Normally if you sell your business the proceeds are split between Sale of Assets and Goodwill. The Profit or Loss on the sale of the assets will depend upon the sale and the value in your accounts, but the remaining money received will be for Goodwill and you will have to personally declare this for Capital Gains Tax (CGT). CGT is at 10% for basic rate tax payers and 20% for upper rate tax payers, although you may qualify for entrepreneurial relief, again at 10%. You also receive your £12,000 CGT allowance in addition to your personal allowance.
The latest news from PMC Partnership incorporating Pomfreys Accountants – May 2022.