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bigduckontax, Accountant
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Uk Do I get any relief if I sell my business (public house)

Customer Question

Do I get any relief if I sell my business (public house) for £45000 due to my retirement. I am over 65 years old.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Well it all depends, it's as long as the proverbial piece of string!

However, lets get down to brass tacks. If you sell your business you might be liable to Capital Gains Tax on the gain made from the sale. This gain is the difference between what you paid for the business and what you sell it for, less costs like legal fees etc. From this gain you can deduct your Annual Exempt Allowance of 10K. The final gain is taxed at 18% or 28% or a combination of the two rates depending upon your income including the gain in the year of sale.

However, there is a loophole. This is Entrepreneur's Allowance (EA) which may be available to you providing you were an initial investor in your business. EA reduces the rate of CGT to 10%. However CGT and EA are extremely complicated and detailed consideration is really outside the scope of this question.

Use of a local, trusted accountant might be useful in this matter and might save you some money. If a sale of landed property is involved the solicitor who handles the conveyancing will almost certainly be able to advise.