Selling your business needs careful advance planning to minimise your tax burden.
It is important to be aware of the rules governing Capital Gains Tax (CGT) which you will incur on all ‘gains’ when selling or disposing of a business asset, such as land and buildings, plant and machinery, or even the entire business itself.
There are a number of CGT reliefs available to business owners, such as Entrepreneur’s Relief (ER) which can make for some significant tax savings.
Depending on your future plans, you may benefit from roll-over relief, which enables CGT to be deferred, if you plan to reinvest in a new business.
If your plans involve the transfer of assets to a spouse or civil partner, hold over relief may help you to defer CGT.
Regardless of your circumstances, it is important to seek advice from our experts who will help you to ensure that your business disposal is tax efficient.