If you are wondering whether, or when, you should dispose of your business, a sensible first step is to form an outline plan.
The sale of a successful trading company will generate a capital gain. This would normally be taxed at 20% after deduction of your annual exemption, which is £12,300 for 2022/23, but only £6,000 for 2023/24.
Business Asset Disposal Relief can reduce your tax rate to 10% on gains of up to £1m. However, this is a lifetime limit, so if you have already taken advantage
of this relief in the past (it was formerly called Entrepreneurs’ Relief) you may not be able to make a further claim on the disposal of your business.
If you want to be sure of benefiting from capital gains reliefs, speak to us.