Selling your trading company
There are several books sitting on my bookshelf that I have never felt overly compelled to read. One is a biography for Warren Buffett and another is Richard Branson's 'Screw it, let's do it – Lessons in Life and Business'. I am sure those books are interesting to read, and they probably paint a much more exciting picture of cutting a business deal than the reality.
The purpose of this Tax Digest is to consider:
- the process and planning that may be required to prepare a business undertaken by a company for sale;
- the tax implications that may arise when preparing a company for sale; and
- the tax implications of selling a business.
Whilst the tax focus relates to the preparation of a company for sale and the tax implications of that process for a company, this Digest includes points that may be useful for unincorporated businesses and limited liability partnerships also.
This Digest also touches on some of the personal considerations of a vendor selling their company, the changes to entrepreneurs' relief/business asset disposal relief and the need to consider the vendor's wider needs, for example retirement planning and estate planning..
In this Tax Digest
- Preparing for sale
- Reorganisation ahead of sale
- Sales process
- Sale of shares or business
- Business asset disposal relief
- Earn-out arrangements and deferred consideration
- Company purchase of own shares
- Vendor-initiated management buy-out
- Enterprise management incentive schemes
- Business premises ownership
- Retirement planning
- IHT planning