Yesterday the Chancellor announced changes to Capital Gains Tax rules, a tax increase under any other name.
Basically, if you are selling a business then all you are concerned with is the net proceeds you will receive after all fees and taxes. Solicitors fees, Agents fees etc.
If you sell a business and do so after 6 April 2008 you may pay more tax, meaning that your net proceeds will be lower due to the fact that taper relief is being abolished.
Our advice is, if you are thinking about selling your business in the next few months then put your business on the market now if you are expecting to sell it at a price higher than your purchase price. You could save 8% in tax.
Alternatively, your business could already be on the market perhaps with another agent or at a higher price. Maybe you should think about reducing the asking price this will improve your chances of selling without affecting the net proceeds from the sale.
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