Any advice for selling UK business?

[Guest Glenda]

Hi there, I wonder if anyone can give us some advice? We are hoping to get our 176 visa through soon ( had medicals, just waiting on police checks) and we need to sell our house and business. My OH has asked me to check out if anyone knows about selling a business in the Uk and if it is worth waiting until we are in Oz. He is asking about corporation tax (or something like that!!). Has anyone sold a business prior to emmigrating or do you know where he would be able to get good advice? Thanks,

 

Glenda

[foxychick]

we tried a couple of sources, a business sales agent, which I wouldn't recommend and then we sold through Businessforsale.co.uk. found that a cost effective way to do it, just means you have to deal with all the enquries/crap yourself. then when you have a buyer, just all went through the solicitor/accountant.

 

good luck

[Guest duncans]

I am in a similar position as i am a dtr of a small ltd company and have shares in it. One thing you will need to consider (like me) is where and what tax level you pay. For example if it is a ltd company that you have and you have had the shares in it for over 2 yrs, in the UK you will only have to pay a max of 18% tax when you sell (10% on anything below £1m) . When you are in Oz and an Oz tax payer if you try and simply transition the cash I think you will get the gains gross from the Uk but then have to pay your rate of tax at the time (cvould be 35-40%).

 

I am looking into it in detail over the next 3 months or so as i am sure you can probably come up with a tax haven route which will enable you to gain from the lower tax rate in the UK which is where the tax shouldbe payed as that is where the business grew, and then transition the cash into Oz without having to pay tax again.

 

I will let you know what I find out

[Alan Collett]

Winding up a business that is run by a limited company can take place by either selling your shares in the company (cleanest from the vendor's position, but not so good from the perspective of the purchaser, as liabilities which might not have been fully disclosed come with the company), or by the company selling the business (which leaves the company as a shell holding cash).

 

The former would enable the individuals to make use of the 18% CGT rate; the latter would involve the limited company paying corporation tax on the gain.

 

Add into this:

 

- the tax free CGT uplift in retained investment assets when an individual becomes a resident of Australia for tax purposes,

 

- the tax exemptions that are available in Australia to those who are holding temporary residency visas and who are tax resident in Australia, and

 

- CGT planning on departure from the UK (disposals in a UK tax year when you are never resident or ordinarily resident are exempt from UK CGT - so long as you don't resume residency within 5 complete UK tax years of your departure)

 

=> Take tax advice that looks at all aspects of your departure, including UK and Australian tax aspects, linked to your Australian visa status.

Hope this helps.

[Guest TraceyT]

Go and see a tax specialist, you will find them in various accountants firms, we did and she has advised me to transfer shares over to my husband. They will be worth their weight in gold.