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Category: Tax
Satisfied Customers: 148
Experience:  Expert
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I recently started up a company in January that has had a

Customer Question

HiI recently started up a company in January that has had a very modest trading to date. However it has big potential due to the branding, domain name etc.We've been approached by a large company that wants to acquire us for £100k.My question is simple. I own 90% of the shares and I want to understand the most tax efficient way of selling my Business. The buyer is interested in the brand, not the Ltd company itself as it'll be absorbed.I want to minimise CGT etc cleverly.
Submitted: 17 days ago.
Category: Tax
Customer: replied 17 days ago.
My co-founder and myself will likely become employees of the Buying company following acquisition. My focus is really ensuring we pay minimal tax on the £100k sale price.
Expert:  RodneyA814 replied 17 days ago.

Hello there,

You will be be able to claim business asset disposal relief which will enable you to pay reduced capital gains tax at 10% if you can meet the necessary conditions.

Customer: replied 17 days ago.
thanks Rodney, what are the conditions?
And in that example, is Business asset disposal relief applicable to the whole company sale or just the sale of some of the assets? (e.g domain name, brand)
Expert:  RodneyA814 replied 17 days ago.

Please find below the HMRC relevant extract:

If you’re selling shares or securities

To qualify, both of the following must apply for at least 2 years up to the date you sell your shares:

you’re an employee or office holder of the company (or one in the same group)

the company’s main activities are in trading (rather than non-trading activities like investment) - or it’s the holding company of a trading group.

There are also Targeted Anti-Avoidance Rules (TAAR) to be aware of as you could lose the relief if you set up a similar company within 2 years of claiming it.