News @ TEn
Tuesday, 12 October 2021
TEn Insurance Services is delighted to announce, that its financial commitment to the original founders of the business, has been cleared.
In late 2014, as our Employee Ownership Trust, known as TENT, was created, the founders disposed almost 70% of their collective shareholding to it. The settlement amount was to be paid by instalments, over the following 7 years, free of interest.
One of the benefits for anybody thinking disposing of a shareholding into an EOT, is 0% Capital Gains Tax (CGT). This is provided more than 50% in total is transferred in one transaction.
On the downside, the sellers have to be open-minded, visionary, and magnanimous enough to accept a sum approvingly discounted from market value by HMRC.
Comments TEn Managing Director Dawn Derbyshire: -
“TEn has always managed to avoid taking on external debt, other than relatively small amounts of advance commissions in respect of Premium Finance and the like.
Nevertheless, the 2014 founders’ settlement, albeit generously flexible in terms of how much we were to pay and when we had to pay it in any financial year, still represented a six-figure annual commitment.
It is good to have this behind us now and to be able to question more vigorously, with a clear conscience, how some of our competitors will handle their own transitions from private ownership. Whilst retaining their independence and focus.”
Two of the original shareholders retain some shares amounting to approximately 10% of the total. However, they are in no hurry to realise their remaining investment and, neither are likely dispose of a value greater than their personal CGT allowance threshold of £12,000, in any one tax-year.
Site map coming fairly soon...
...in the New Year probably.
The site map will be an aid to navigation around our various websites. Of course, these sites have just undergone a major structural update and things are still changing.
So, it’s a bit like when a supermarket periodically shifts things around, either, just for the hell of it, or, because they have decided to squeeze in a click & collect point, where the bread used to be.
As stuff relocates, consequently, leaving the signs above the ends of the aisles as they were before, could become confusing.
Our current situation here is very similar.
Mind you, whether before or after the reorganisation, you can never find the Tahini paste. You always have to ask.