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Employee-owned business stifled by tax avoidance measures

Gavin Hinks, Accountancy Age 19 May 2008

MPs complain anti avoidance measures hinder enterprises owned by their employees

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An all party groups of MPs will today warn that Treasury measures aimed at halting tax abuse is stifling the the development of owner managed owner managed businesses.

According to The Financial Times a report from an all-party group of MPs says that employee owned businesses achieve better results by selling to staff running than going through MBOs which run the risk of alienating the 'productive' tier of management below the buy-out team.

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