Selling your limited company is generally structured as a share sale, which has favorable tax treatments in the UK compared to an asset sale.
Under a share sale, any profit you make is subject to Capital Gains Tax (CGT) rather than Income Tax. Furthermore, if you meet the criteria for Business Asset Disposal Relief (formerly Entrepreneurs' Relief), you may qualify for a reduced CGT rate of 10% on qualifying gains up to £1 million.
We recommend consulting with a certified accountant to review your personal tax status before finalizing any sale, but we ensure all transfer documentation is optimized to support standard tax-relief applications.
Key Takeaways
- Share sales generally fall under Capital Gains Tax (CGT).
- Business Asset Disposal Relief (BADR) can reduce your tax rate to 10%.
- Always ensure all filings are up to date before transfer.