Selling a business

[steve2]

i am hoping to sell on my business as i am looking to retire (retail shop) to someone already in the trade which will require them to take on a new lease as mine has a year to run.
I am not looking for a fortune for them to buy it but there is high 00s in the bank account so what I’m asking is what would be the best option to minimise tax as i would have to pay capital gains tax on it.
In 2000 i and my colleague paid £16k each to buy the business from our old bosses and then i bought out my colleague for £16k again,
Am i correct in saying i can offset £32k against CGT on what i am offered for the business
I will be speaking to my accountant but would like some input if i can

[Jannerboy]

Yes, theoretically you can deduct the 32k from the sale price. It is basically your cost base (16k initial investment + 16k for the buyout). CGT is only paid on the net profit.

[FlyingPanda]

And don't forget that if you've owned it for over two years, you should be eligible for Business Asset Disposal Relief (BADR) which saves a few percent on your CGT (unless you've already used it - lifetime allowance of £1m)

[HoHoHo]

FlyingPanda said:

And don't forget that if you've owned it for over two years, you should be eligible for Business Asset Disposal Relief (BADR) which saves a few percent on your CGT (unless you've already used it - lifetime allowance of £1m)

Which is currently 14% but rising to 18% in April this year.

I’ve just sold my business after 10 months of DD and negotiating and it was without doubt one of the most stressful experiences I’ve ever experienced!

Edited by HoHoHo on Wednesday 28th January 19:48

[steve2]

Appreciate all the helpful comments