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Selling your business: relief all round?

Author: Henry Ejdelbaum

Tags: Capital Gains Tax, entrepreneurs relief, hmrc, selling, Tax

There are many reasons why you might be selling your business.

Perhaps you’re looking to change track, after having had success in your business’ field, and you want a new challenge. Or, perhaps you feel like you’ve taken your business as far as you think it can go. Maybe you’ve finally earned time to yourself, and you don’t want the responsibilities that come with running a small business anymore.

For all the reasons for selling up, there are just as many ways of structuring the actual sale. For example, should you sell the business’ trade, or its shares?

What’s more, another thing to consider are the tax implications. Whilst you’re free to enjoy cashing-in, there will inevitably be tax to pay. Whatever the exit strategy, there are rules and regulations that ought to be considered.

For example, if you’ve made capital gain when selling your business (for instance, from the money you get from the sale itself, or perhaps from the assets from the business that you keep), you may be liable to pay Capital Gains Tax.

Reprieves do exist. Entrepreneurs’ Relief means that you only have to pay tax at 10% on all gains on qualifying assets.

Working out what you’re entitled to is a complicated process. This is where AIMS can help. Our fully-qualified accountants are experts in understanding both the financial regulations surrounding a small business, and how to run one.

They understand that there are a number of criteria that have to apply in order for you to qualify for Entrepreneurs’ Relief. Don’t get caught out by paying more tax than you have to.

At AIMS, we pride ourselves in straight and direct communication, and in telling you exactly what you need to know in order to allow you to make a fully-informed decision.

If you want to know any further information get in touch with an AIMS Accountant today.