Selling your business
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 (£12,300 for 2021/22).
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, take advice and plan early.
Be prepared for selling your business by planning early!