Irish ProShare Association Chair Marie Flynn has welcomed a productive and encouraging meeting with Peter Burke, Minister for Enterprise, Tourism and Employment, as momentum builds around the introduction of Employee Ownership Trust (EOT) legislation in Ireland.
The meeting provided an opportunity to highlight to Government both the growing urgency and clear opportunity to make EOTs a viable and attractive succession route for Irish business owners. It was attended by Marie Flynn, Chair of IPSA; Graeme Nuttall OBE, former UK government adviser on employee ownership; Alan Coleman, founder of Wolfgang Digital, Ireland’s first company to establish an EOT; and George Lawlor TD, Labour Party Spokesperson on Enterprise, Tourism and Employment.
Each working day this year, one Irish company has been sold – most often into foreign ownership. Meanwhile, in the UK, 10 companies every week transition to employee ownership through the EOT model, supported by fair and pragmatic tax measures.
During the meeting, participants discussed the wider implications of Ireland’s over-reliance on multinational corporations and the need to strengthen and retain domestic ownership of Irish enterprises. EOTs were identified as a powerful mechanism to help secure Irish ownership, preserve jobs, and embed long-term resilience in the SME sector.
“This was a positive meeting with the Enterprise Minister on the important issue of Employee Ownership Trusts – and it looks like we might be gaining some momentum here,” Ms Flynn said. “We urge the Government to seriously consider making this a viable option for Irish businesses to help boost and expand Ireland’s SME sector and reduce reliance on multinationals.”
Levelling the Playing Field
At present, Ireland’s tax and legislative framework creates significant barriers for businesses seeking to transition to employee ownership. These include:
- A 6% discretionary trust tax and a 1% annual charge on the death of the seller.
- The potential for income tax of up to 55% on the sale to an EOT, rather than the standard 33% Capital Gains Tax.
- An upfront tax charge on the seller for the full price, even if proceeds are received over several years.
IPSA’s key request to Government is straightforward: level the playing field so that Irish business owners selling to an EOT are treated no less favourably than those selling to private equity or trade buyers. This change, IPSA stresses, can be achieved at no cost to the Exchequer.
Building a Sustainable Ownership Model
The next phase of IPSA’s advocacy will focus on introducing targeted incentives to encourage greater adoption of EOTs – for example:
- A special €10m Entrepreneurs’ Relief for transfers to an EOT (at a 10% rate), or
- A CGT exemption on transfers to EOTs, and
- An annual employee bonus exemption (similar to the UK’s £3,600 allowance).
These measures would make Ireland a more competitive environment for indigenous business ownership, ensuring that company profits and decision-making remain within local communities and that employees can directly share in the success of their workplaces.
Strong and Growing Political Support
This latest meeting builds on the strong cross-party support already demonstrated at IPSA’s Oireachtas briefing in September, where TDs and Senators from across the political spectrum voiced their backing for legislative change.
The growing consensus reflects a shared understanding that employee ownership can play a vital role in economic resilience, community wealth-building, and SME succession planning.
IPSA will continue to work closely with Minister Burke, the Department of Enterprise, and the Department of Finance to progress this important initiative, so that Ireland can finally unlock the potential of Employee Ownership Trusts.
