Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has she made of the impact of treating 50% of the gain in disposal to trustees of an Employee Ownership Trust as the disposers' chargeable gain for CGT purposes.

At Budget 2025, the Chancellor announced that the relief from Capital Gains Tax available on qualifying disposals to Employee Ownership Trusts will be reduced from 100% to 50%. This will retain a strong incentive for employee ownership, whilst ensuring that business owners pay their fair share of tax. The relief remains more generous than alternative reliefs that individuals might use when disposing of their companies, such as Business Asset Disposal Relief.

An assessment of the impacts can be found in the Tax and Information Note for this measure, here: Capital Gains Tax — Employee Ownership Trusts - GOV.UK