Tax, investments and pension rules can change over time so the information below may not be current. This article was correct at the time of publishing.

What do I do with the money from selling my business?

It can take a lifetime to build your business to the point where you can sell it for what you hoped.

Before you look at selling your business, you need to make sure that you have done the necessary tax planning beforehand. If you do not plan ahead, you could lose out unnecessarily.

At Four Wealth Management, a Financial Adviser can work with you to navigate the various tax pitfalls and reliefs.

Find out more about small business financial planning

When you have sold your business, you may be unsure what to do with the money. If you leave it in cash in the bank, the value could go down over time due to low interest rates and the effect of inflation.

At Four Wealth Management, a Financial Adviser can work with you to determine your financial goals and can recommend investments suitable to your individual circumstances to help you achieve your goals.

Speak to a Financial Advisor

Do you still need income?

Depending on how much you get from the sale of your business, you may still need income. You could either choose to continue working in some capacity after selling your business or take income from your investments. How you get income is likely to depend on how much you require every month and how much money you made from your business sale. The level of income you require will depend on your monthly expenditure.

When taking income from existing investments, it is important to consider different types of tax wrappers to enable you to receive your income tax-efficiently.

Once you know how much income you will be taking, your financial adviser at Four Wealth Management can recommend ways of investing the remaining money that is in line with your attitude to risk and takes your investment time frames into consideration.

Regardless of whether you require income or growth, when you invest you should do so for a minimum of five years to give your investments sufficient time to hopefully grow in value.

`Income drawdown’ will reduce the size of your investments and the investment growth may not be sufficient to maintain the level of income you wish to draw. If you withdraw money at a rate greater than the growth achieved by your investments, your remaining fund will reduce in value. The level of income you take will need to be reviewed if the fund becomes too small – this is more likely the higher the level of income you take.

Gifting assets

If you are planning on gifting some of the money to children or grandchildren, there are various ways that you can do so. Several gifting options will mean that the gift is outside of your estate and therefore exempt from Inheritance Tax.

Find out what to do with your business sale proceeds

To discuss selling your business or investing the proceeds from a business tax-efficiently, call us on 0117 973 0500 to book a no-obligation financial review meeting.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

Equities do not have the security of capital which is characteristic of a deposit with a bank or building society.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

Enquire Now

If you have any queries or would like to arrange a face to face meeting with an adviser for a no obligation review of your personal finances, simply book a call back using the form below. Alternatively, you can call us on 0117 973 0500.

The Partner together with St. James's Place Wealth Management plc are the data controllers of any personal data you provide to us. For further information on our uses of your personal data, please see the Partner's Privacy Policy or the St. James's Place Privacy Policy.

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What do I do with the money from selling my business?
FourWealth Management