If you are considering selling your business, passing it on to the next generation or retiring from your business, a list of some of the tax reliefs that can be availed of is outlined below. Although no changes were made to the main reliefs from capital gains tax (CGT) in this year’s Finance Bill for entrepreneurs either selling their trading businesses to third parties or passing it on to the next generation, the outcome of the recent review of Entrepreneurial Relief is to be considered with the aim of better supporting entrepreneurs and entrepreneurial activity.
- Termination Payments
- Company Funded Pension Planning
- Retirement Relief
- Entrepreneur Relief
- Share Buy-Back
- Holding Company
- Family Matters
It is never too early to begin formulating an exit plan from the business and in order to best utilise the reliefs available, it is advisable to consult your tax adviser over 10 years before exiting the business. This provides peace of mind regarding the business and financial security post-retirement and also can be a flexible plan which can accommodate possible changes to available reliefs such as Entrepreneur Relief. While early planning is recommended, much can be done where shorter time frames might apply.
Do you want to know more?
George Skelton, Tax Partner. email@example.com