If a management buyout will result in an employee-controlled company, and those buying the shares from the existing shareholders need to borrow to finance the acquisition, they may be able to organise their borrowing tax efficiently. Income Tax Act 2007 provides for relief to be given to an individual who pays interest on certain loans, including a loan to acquire shares in an employee-controlled company. For these purposes, 'employee' includes a director.

Various conditions have to be met for the relief to be given, although even if they are met, no relief can be claimed if the company's business consists solely of the occupation of commercial woodlands.