10 May 2025

Tax trap – gifting part of company sale price to employees

Corporate and Commercial Law | KN Talk | John Young

In this podcast, John Young and Matt Spencer discuss the complexities surrounding rewarding key employees with a share of the sale proceeds in business transactions. Matt Spencer explains the potential tax implications that may arise from such payments and provides practical guidance on navigating these challenges. From understanding employment tax considerations to exploring available exceptions and seeking HMRC clearance, Matt offers valuable insight for businesses looking to structure equity arrangements effectively.

About the authors

Matt Spencer is a Partner in the Corporate, Commercial and Finance team, specialising in tax law. He advises on the efficient structuring of a wide range of corporate and real estate transactions, including M&A, land transfers, developments and leases.

John Young is a Partner in the Corporate, Commercial and Finance team, specialising in the business needs of entrepreneurial, high-growth and family businesses. He advises clients throughout their lifecycle, from start-up through to listing and beyond.

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