If you have traded through a limited company, and are looking to retire in the next couple of years, a common way to exit is to put the company into a Members Voluntary Liquidation (solvent liquidation). If this is the route for you, then you may want to ensure you liquidate the company before 5th April 2025 to take advantage of the lower capital gain tax rates.
The problem
You may be eligible to Business Asset Disposal Relief on the capital gains tax on the disposal (i.e. liquidation) of your business. Currently this means you would pay capital gains tax at 10%, however this rate is increasing to 14% from 6 April 2025. So, if you don’t act fast you could be paying more tax.
What do you need to do?
You need to act now if you want to take advantage of these lower rates as the company has to be liquidated and the funds paid out by 5 April 2025. As various procedures need to be followed you will need to take action as soon as possible in January 2025.
If you would like any further advice or just a quick chat, please call Lindsay Farrer on 01228 534371 or email advice@saint.co.uk
Lindsay Farrer
3rd January 2025
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