July 2020

Selling your trading company

by Anton Lane

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..

Free preview of this Tax Digest

About the author

Anton Lane is a chartered tax adviser with over two decades handling contentious tax disclosure and cases of suspected serious fraud. Anton's career began at Ernst and Young, where he qualified and specialised in defending clients under tax investigation. He has held senior positions with offshore fiduciary service providers and has built up considerable expertise on offshore structures, non-domiciles and international taxes. Anton regularly contributes to Taxation, Tax Journal, the annotated Finance Act and is the author of five previous Tax Digests. Anton heads up his own practice of specialist advisers helping practitioners with tax consultancy and investigations.