Why introduce an Employee Benefit Trust?

Below is a list of 20 reasons why companies and their advisers should consider the introduction of an employee share trust arrangement.

Please note that none of these reasons are mutually exclusive of each other. The company can choose to operate an employee share trust for all, or any combination of these reasons.

  1. To provide benefits to employees on a discretionary basis.

  2. To advance beneficial loans to employees.

  3. To make distributions to employees.

  4. To establish quality investments on behalf of employees.

  5. To enable employees to benefit from the use of assets.

The beneficial loans that are advanced to employees are used, typically, for:

  1. Home improvements

  2. Mortgage repayments

  3. Investments in appreciating assets

  4. Buy-to-let arrangements

  5. Funding of school fees

  6. Funding of holiday costs