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Advocacy for worker co-ops: Co-operatives UK submission to Treasury

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21st February 2023
Last updated
16th March 2023
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Co-operatives UK policy team has submitted a representation ahead of the Spring Budget.

We are asking the Treasury to amend Schedule 37 of the Finance Act 2014 so tax reliefs are applied when a controlling stake of a business is sold to a ‘common ownership worker co-operative’ (COWC) formed by the employees.

Currently this tax relief is only available for Employee Ownership Trusts (EOTs).

What are the key benefits of this change?

This change will offer a mechanism that is ‘low risk’ of tax avoidance for:

  • Expanding choices for business owners looking for an exit option
  • Making worker-initiated transitions more simple or attractive options to continue businesses
  • Incentivising better business practice as COWCs have a more democratic and transparent legal form than EOTs

Co-operatives UK will continue to lobby the Treasury ahead of budget day, pushing for this simple change to the Finance Act to expand worker co-ops and increasingly democratise the economy. 

Please support us by writing to HM Treasury to back our proposal

You can find our full submission here.