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!