The Bedrock team know that for entrepreneurs selling shares in the business that they have nurtured and grown over the years can be an emotional experience as well as it being one of your most significant assets – quite often it can be more valuable than your home. This will be a critical stage in a Business owner’s life cycle.
Don’t get caught out by simply relying on the premise that entrepreneurs’ relief will be available as you have a trading company, this is a dangerous assumption which may for a number of reasons be incorrect.
Entrepreneurs’ relief is only available if the activities of your business do not include a substantial extent of activities other than trading activities. Substantial in this context normally means more than 20% in terms of assets, income or management/employee time.
If you are considering a sale of shares and you have substantial investments, either in terms of assets or income or a significant cash balance it is possible that access to entrepreneurs’ relief could be in doubt.
Don’t get caught out post transaction by an HMRC enquiry into your tax affairs when there are steps that you could have taken in advance which would have protected the position including expert advice with clearance applications to give you additional reassurance. You may need to do some pre-sale plannning, something that the Bedrock team has experience in providing.
Why not contact the Bedrock team for an initial free consultation.