Exiting your business:
Ensuring your financial security
If you were to sell your business, you would receive consideration for it. In a family succession you may not be looking to achieve the highest value for your shares, but you may need a certain level of consideration to ensure your financial security. After all, many people look upon the value of their business as their pension.
If there are surplus funds in your business, then you might want to extract those funds as your consideration. Alternatively, you might want to receive a regular 'income' or to receive the value of your business in stages, as the business can afford it. We can suggest tax efficient ways to achieve your aims.
When you dispose of the shares or assets of your business, a charge to capital gains tax may arise. Click here to find out more…
If you were to die within seven years of gifting your business to your relatives for less than its market value then there may be inheritance tax implications. Although in many cases 100% business property relief will be available, in certain circumstances the relief against inheritance tax may only be 50% or it may be denied altogether.
Tax planning should be an important part of your exit strategy.
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Where next?
- Planning your exit
- Selling your business
- Floating your company
- Exiting a partnership or minority shareholding
- Closing down
- Tax issues
General...
- Contact us about this issue
- Read about how we can help you & your family
- Request a meeting with us
