Selling a Business

Tax Planning: What to Consider When You’re Thinking Of Selling Your Business

Tax Planning: What to Consider When You’re Thinking Of Selling Your Business

One of the key issues for business owners planning to retire or sell a business centres on how best they plan their tax liability. To maximise the best outcome business owners should plan well in advance. In our experience, it is never too early to consider financial planning and whilst ‘younger’ businesses may not place this at the top of the agenda right now, the reality is that planning at an early stage can be structured to help with current tax liabilities as well as those on retirement or sale. Capital Gains Tax Both Capital Gains Tax (CGT) and Inheritance Tax (IHT) need to be considered carefully as part of the planning exercise and examined in close detail – without appropriate planning for these two very real scenarios business owners might find themselves or their ‘estate’, handi... »

Accessing and Maximising Entrepreneurs Relief On A Company Sale

Accessing and Maximising Entrepreneurs Relief On A Company Sale

It is often on a disposal of a business where tax considerations can have a considerable impact and with good planning, business owners can achieve a tax efficient exit. Entrepreneurs relief (“ER”) is often the key consideration for shareholders in achieving such a tax efficient exit and this article summarises some of the common tax issues and opportunities that business owners should consider in preparing for an exit. Entrepreneurs relief – what is it? ER provides for a 10% rate of capital gains tax on qualifying disposals up to a lifetime limit of £10m. This is clearly an attractive rate of tax for UK resident individuals and ensuring that this relief can be utilised as well as maximising use of the lifetime limit are key considerations to business owners on an exit. Accessing entrepren... »

Selling a Business: What you Need to Know

Selling a Business: What you Need to Know

As a business owner, selling a business can simultaneously be one of the most stressful, liberating, bittersweet and potentially exhilarating experiences of your life. It should not be taken lightly – the process of selling a business is tricky, and introduces all sorts of variables which could scupper the whole process at any point. This article is intended as a step-by-step guide to the sale process for business owners. We cover how to determine whether the time is right to sell, how to increase your business’ value prior to the bidding process, the sale process itself, and how to choose a buyer and complete the deal. Read on to find out more. How do I know whether the time is right to sell? Ask yourself these questions: Have I planned ahead? Selling a business requires careful planning ... »