New Forest

10/05/2022

What to do with your company when you want to retire?

When you are nearing retirement there will be a variety of options available to you with regards to the succession of your business. Which option is right for you will depend on a variety of factors, including whether there are other shareholders in the company currently, but broadly, these are your options:

  • Sell the company to a third party
  • Sell/give the company to family members
  • Complete a company purchase of your shares
  • Complete a management buy out
  • Sell your shares to an employee ownership trust

The tax implications of these options vary greatly, therefore advice should be sought to ensure you do not inadvertently fall foul of anti-avoidance legislation (i.e. end up paying more tax than you needed to). For example, under a company purchase of own shares, if the conditions are not all met, the proceeds could be taxed as income rather than capital, with tax paid at 45% instead of 10% (under business asset disposal relief).

If you would like to look into your options further, HWB are running a seminar on this topic on 22 June 2022. If you would like to attend, please click here to register, or email marketing@hwb-accountants.com.

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