Blog / Selling your business
Selling your business: capital gains, BADR and exit planning
Notes on the tax side of selling or restructuring a UK company: capital gains, Business Asset Disposal Relief, holding companies and exit timing.
Limited company or sole trader if you take all the profit?
If you draw every pound the business makes, a limited company often leaves you with less take-home than a sole trader on the same profit. Its advantages lie in liability and retained profit.
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Starting a side hustle while employed: sole trader or limited company?
If you already earn well from a job, a side hustle's profit lands on top of your salary as a sole trader. Put it through a limited company and the starting point is very different.
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Your company made a capital loss. Here is what you can do with it
A company capital loss goes against capital gains in the same accounting year, and anything left over carries forward indefinitely. What it will never do is reduce your trading profits.
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Rented out your home before selling? You may still owe no capital gains tax
You do not need to pay any capital gains tax on the sale of your house, if it has been your main home the whole time you owned it. Rent it out first, and the rules change, unless you know the exemption that can bring the whole gain back into relief.
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Selling stocks and shares as an agency owner: the tax, in plain English
Sell shares at a profit and the taxman wants a slice. Here is what capital gains tax, dividend tax, and Business Asset Disposal Relief actually mean for an agency owner, plus the one shelter most people underuse.
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If capital gains tax rises, what should agency owners do?
There is speculation that capital gains tax could be aligned with income tax rates. Nothing is confirmed, but if you plan to sell assets soon, it is worth planning now.
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Can too much cash in your agency cost you Business Asset Disposal Relief?
Business Asset Disposal Relief only applies if your company is a trading company. Let cash and investments build up and HMRC can argue it is not, which changes the rate you pay when you sell.
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Is gold taxable in the UK? Capital Gains Tax on gold
Sovereigns and Britannias are exempt from CGT because they are UK currency. Gold bars, ETFs, foreign coins and gold held in a company can be taxed at up to 24%.
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How do you sell your agency without getting destroyed by tax?
Two structures come up again and again before a sale: selling through a holding company, or selling while non-UK resident. Each solves a different problem, and one of them has a five year trap in it.
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Why clean books quietly raise your agency's valuation
Buyers pay more for businesses they can understand. The work that makes your numbers legible is the same work that makes them defensible.
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