The meeting, hosted at the HQ of the Irish Government, convened by leading voices in employee ownership:
- Graeme Nuttall OBE, former UK Government adviser and International Ambassador for the eoa
- Alan Coleman, founder of Wolfgang Digital, the only Irish company so far to establish an EOT
- Marie Flynn, Chair of the Irish ProShare Association (IPSA), Ireland’s leading voice on employee share ownership
- Oonagh Reid, Director at Arup Ireland
Speaking after the briefing, Graeme Nuttall OBE, said:
“It’s a no-brainer - more than one politician reacted this way after hearing today’s call for employee ownership trusts in Ireland. Tax obstacles mean Ireland’s missing out on the wide-ranging, proven policy benefits of employee ownership.
“Today’s presentation to MPs and Senators at the HQ of the Irish Government advanced all-party support for employee ownership. It was an important step to removing the tax obstacles. There’s no fiscal cost to this and so there’s optimism action will be taken soon. And as we’ve seen in the UK, and elsewhere, going a step further and providing tax incentives for EOTs will raise awareness and accelerate take-up.”
The push comes after a landmark moment in May 2024, when Dublin-based digital marketing agency Wolfgang Digital became the first Irish business to transition to employee ownership through an EOT. Founder Alan Coleman now wants government backing to clear tax barriers so other Irish companies can follow suit.
Research findings
The Indecon Review of the taxation of share-based remuneration commissioned by the Department of Finance recommended that Ireland emulate the UK’s approach by introducing specific EOT legislation with positive tax incentives to grow employee ownership.
The work of the Irish ProShare Association (IPSA) to identify the practical steps needed to make EOTs viable in Ireland has seen IPSA’s EOT Working Group, chaired by Marie Flynn, meet with the Department of Finance to distinguish between tax problems that could be fixed through clearer official guidance and those that require legislative change.
A key issue is that, unlike in the UK, Irish EOTs are not exempt from the discretionary trust tax. This means that even though Wolfgang Digital’s EOT purchased shares at full market value, its trustee must still pay 6% discretionary trust tax on the founder’s death and 1% annually thereafter — an ongoing burden that makes EOTs unattractive in Ireland.
Why Ireland needs EOTs
A joint analysis by Dr Oliver Browne (UCC) and Graeme Nuttall (Oxford University) underlines the opportunity. Employee Ownership Trusts allow a company to be owned collectively by employees without each worker having to buy shares. In the UK, over 1,800 firms have already converted, including Aardman Animations, with evidence showing stronger productivity, resilience, and employee engagement.
By contrast, Ireland risks falling behind. Current tax rules make it cheaper for founders to sell to multinationals than to their own employees. Every working day, an Irish company is sold abroad – weakening the domestic economy. IPSA argues that removing tax barriers to EOTs would not cost the Exchequer, but would instead strengthen Irish SMEs, keep businesses rooted locally, and spread prosperity more evenly.
Next steps
With political support growing across party lines and no immediate fiscal cost, campaigners are hopeful that Ireland could soon follow the UK’s lead. Aligning with international best practice, they say, would ensure that when founders face succession, selling to employees becomes as attractive – if not more so – than selling out.
Read more about the first Ireland EOT
Ireland Makes History with its First Employee Ownership Trust