What do I do when my business has sold?
So, you have been through the gruelling process of preparing your business for sale and putting it on the market. Now that you have successfully secured the deal, you may be wondering what the next steps are. You may be asking yourself numerous questions about how to minimise taxes on the sale, protect your earnings and plan for the future. To make this daunting next step more manageable, we have compiled our tips in this article to give you guidance in this stage.
How can I minimise taxes on the sale?
Once your business has sold, you may have made a ‘capital gain’. This is essentially money you get from the sale, or assets from it that you maintain. The most important thing to now consider is whether or not you qualify for Entrepreneurs’ Relief, which means that you only pay 10% Capital Gains Tax on any gains. This can be claimed by directors, sole traders, partners, and employees of the business.
Therefore, the first thing you should do is to find out if you are eligible for Entrepreneurs’ Relief. You may also be able to claim other reliefs, including Business Asset Rollover Relief, Incorporation Relief and Gift Hold-Over Relief.
How can I protect my proceeds?
After your business has sold, there are three main ways to protect your proceeds.
1 Diversify your holdings
If the sale was cash, then you should consider a diversification plan for the proceeds. Factors that affect your plan include the value of proceeds, assets, and your age. The best advice we can give is to combine mutual funds, real estate, and money market accounts. If you need any help and advice at this stage, then contact FastCash4Houses who can guide you through the process.
2 Get help from a knowledgeable stockbroker
If you received stock instead of cash, then get help from a stockbroker who can give you advice on ways to reduce the chances of your return dissipating when the stock plummets. If you have taken this route, then you should start planning your hedge strategy before the stock starts to plummet.
3 Review your exposure to liability
Having significant assets now opens you up to the chance of someone going after you. Therefore, if you do not already, get sufficient primary and umbrella insurance coverage to protect you. It is vital to analyse whether or not you are exposed to personal financial risk in any other businesses you have ownership of.
How can I plan for my future?
Once your business has sold, you may now want to consider any plans you have made for your family’s future and estate. Some points to consider include making a will/living will, setting up a trust, reviewing beneficiaries and considering tax-free gifting.
Overall, there are many important steps that you should consider once you have sold your business. These will all ensure that you reap the benefits from the time, money, and effort you invested into your business. If you want to find out more about how FastCash4Houses can support you once you have sold your business, head over to our website https://fastcash4houses.co.uk/. Alternatively, speak directly to a member of our team on [email protected] or 01204 294356. At FastCash4Houses, we are here to support you every step of the way before, during and after selling your business.