Selling a business
Selling your business is likely to be the biggest financial event of your life. The structure of the deal, its timing and the reliefs available can make a difference worth hundreds of thousands of pounds, or more. We make sure those decisions are made deliberately, not by default.
Most sellers focus on the headline price. But what you actually keep depends on decisions that are often made in a rush, late in the process:
By the time heads of terms are signed, some of these options have already gone.
You work directly with a senior adviser, start to finish. We move at your deal's pace, and our advice is shaped around value and negotiation, not just tax law.
FAQs
It depends on how the sale is structured, how long you've held the shares and whether reliefs apply. Gains on shares are generally taxed at capital gains tax rates of up to 24%, while Business Asset Disposal Relief can reduce the rate to 18% on up to £1 million of lifetime gains for qualifying sellers. Structure, timing and the form of payment can all change the final figure.
Ideally 12 to 24 months before a sale. Some reliefs need conditions to be met for at least two years, and restructuring is easier and safer when it isn't happening under deal pressure. That said, it's never too late to review heads of terms or the sale agreement.
Yes. Earn-outs, deferred payments and loan notes can be taxed at different times and in different ways from upfront cash, and the treatment depends on how they're drafted. Getting this right in the sale agreement can affect both how much tax you pay and when you pay it.
Yes. Cross-border buyers are common, and the UK tax position for you as the seller is usually similar. The buyer's structure, payment terms and any shares you receive in the buyer's group need careful review.
Specialist advice
Related advice
Make sure you qualify for Business Asset Disposal Relief when you sell. Specialist advice on the conditions, the 18% rate and protecting your claim.
Read moreGet your business sale-ready. Specialist tax advice on holding companies, extracting cash and property, and protecting reliefs before you sell.
Read moreGet certainty from HMRC before you complete. Specialist advice on advance clearance applications for share exchanges, reorganisations, demergers and sales.
Read moreSpecialist tax advice on sale agreements. We negotiate tax warranties, indemnities and tax covenants to protect sellers and buyers after completion.
Read moreSpecialist tax advice on selling your business to an Employee Ownership Trust: qualifying conditions, valuation, funding and HMRC clearances.
Read moreTax advice on management buy-outs for owners and management teams: structure, funding, HMRC clearances and management incentives.
Read moreFree guide
Everything to think about in the 12 months before you sell: reliefs, structure, timing and the sale agreement.
Selling your business: the tax playbook
The earlier we're involved, the more options you have. Book a confidential call.
Or write to taxadvisory@aswatax.co.uk
