Disposing Of Business Assets
Retirement Relief When Selling a Business
It is best to begin considering retirement as early as possible, as this will leave you with most options. This is especially true, when it comes to disposing of business assets. Tax relief is something that needs to be prepared for, with all terms and conditions considered.
What is CGT Retirement Relief?
CGT is a tax on the profits incurred from disposing of a business asset. CGT retirement relief means that this tax is reduced by 100% and does not need to be paid. However, in this instance ‘retirement’ does not necessarily mean the owner must retire to benefit from this relief. The owner could in fact continue to work with the company following the disposal of the business asset. ‘Retirement’ simply refers to the age restriction which is necessary to qualify for this relief.
There are two main types of retirement relief available to those aged 55 and over, dependent on whether your business asset is being disposed of to your offspring or someone outside your business.
For someone in this position, there are many different tax relief options available and it is worth considering the pros and cons of each scheme. If you’re looking for advice, on whether retirement relief is a suitable option, then Go For Brokers has a shortlist of independent third party accountants / tax consultants, who you can contact to see if they are suitable for your specific Retirement Relief tax planning.