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  • Bradford accountants urge business owners to tread carefully when considering disposals

    Award-winning Bradford accountancy firm Watson Buckle is reminding businesses to think carefully about the tax challenges they might face when considering selling or ‘disposing of’ a business.

    Susan Sedgwick, Joint Managing Director at the firm, has voiced concerns that many business owners often overlook the Capital Gains Tax (CGT) implications of selling off a business or its assets – and that failing to plan ahead could cost firms dear.

    She warned: “Sole traders, self-employed business owners and business partnerships alike will incur CGT on all ‘gains’ brought in from the sale of a business or business asset.

    “This applies to the likes of land and buildings, plant and machinery, or even a sale or disposal of an entire business itself,” she warned.

    Susan said that business owners who are disposing of an asset or a company for the first time have a tendency to overlook CGT until it is too late.

    She added that company bosses thinking about disposals should plan ahead as early as possible in order to reduce their chances of being hit with a hefty CGT bill.

    “There are numerous ways that business owners can reduce the eventual amount they will pay in CGT, such as Entrepreneur’s Relief (ER),” she said.

    “With ER, however, businesses need to plan ahead way in advance and ensure that the sale of their business or business asset is structured in the correct way in order for them to benefit from tax savings,” she added.

    “Circumstances will always differ on a case-by-case basis, which is why is why tailored advice is crucial every time – even if you have disposed of a business or asset in a relatively tax-efficient way once before.”