Chris Thorpe considers options when looking to retire from a tax perspective.
After a lifetime of grind, retirement seems particularly sweet when it’s a business which was built from the ‘ground up’ – all that effort and the risks taken.
With regard to the relevant taxes, it is primarily capital gains tax (CGT) which needs consideration when a business is being sold. A business is generally free from inheritance tax (IHT) by virtue of business property relief (BPR), although from April 2026 only £1m of value can benefit from 100% relief, the excess benefiting from a rate of 50%. Once the business is sold, BPR will not apply to the cash proceeds, so that would also need to be considered.
Selling to a third party
One way to realise the fruits of one’s labour is to sell the business as a going concern to a third party in
