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.
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 and potential to hopefully grow in value.
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.
Book a no-obligation financial review
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 you select and the value can therefore go down as well as up. You may get back less than you invested. An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
