Selling a Business — Financial Planning Advice
The financial planning decisions made before a business sale are often more valuable than those made after.
Your Situation
If you are planning to sell your business and want to maximise what you walk away with…
Selling a business is one of the most significant financial events in an entrepreneur's life. The sale price is not the final number — what you actually keep after tax, after reinvestment decisions, and after planning for the next phase of your life depends enormously on the quality of financial planning that takes place before the transaction completes. Pre-sale planning is almost always more valuable than post-sale planning: once heads of terms are agreed, many of the most impactful strategies become unavailable.
Castle Stonebridge advises business owners across the UK on pre-sale and post-sale financial planning. We help you structure the sale to maximise Business Asset Disposal Relief (BADR), use pension contributions to extract profit tax-efficiently before sale, model your post-sale income needs, and invest the proceeds in a way that supports the next chapter of your life — whether that is retirement, a new venture, or anything between.
Questions We Answer
"Am I structuring the sale correctly to maximise Business Asset Disposal Relief?"
BADR reduces CGT to 10% on the first £1 million of qualifying gains — but qualification conditions must be met and some can be inadvertently breached.
"Should I make additional pension contributions before the sale completes?"
Company pension contributions made before the sale can dramatically reduce corporation tax and/or the taxable value of proceeds.
"How much post-sale income do I need, and how should the proceeds be invested?"
A clear income plan for post-sale life shapes how the proceeds are structured and invested.
"What are the inheritance tax implications of the sale proceeds?"
Business assets often qualify for Business Property Relief — but cash or investments received on sale do not.
"Should I sell shares or assets, and what are the tax implications of each?"
Share sales and asset sales have different tax treatments for buyer and seller — getting this right is critical.
Our Approach
How We Guide You
Pre-sale financial review
We review your business ownership structure, pension position, and personal financial plan to identify pre-sale planning opportunities — ideally 12–24 months before the sale.
Tax-efficient pre-sale planning
We advise on pension contributions, extraction strategies, and ownership structure to maximise post-tax proceeds within the available tax framework.
Post-sale investment planning
We design a post-sale investment and income plan — covering ISA, pension, and investment accounts — matched to your lifestyle and long-term goals.
Ongoing financial management
We provide continuing financial advice after the sale, reviewing your plan annually and adapting it as your life evolves.
Key Considerations
What you should know before making a decision
- Business Asset Disposal Relief (formerly Entrepreneurs' Relief) reduces the CGT rate to 10% on the first £1 million of qualifying gains from selling a business. Qualifying conditions include owning at least 5% of shares and voting rights for at least 2 years before sale.
- Company pension contributions made before the sale can be a highly tax-efficient way to extract value — they reduce corporation tax, do not create an income tax liability for the individual, and are not included in the sale price.
- Business Property Relief (BPR) — which can exempt business assets from IHT — is lost on the sale of the business. The cash or investments held after the sale are fully within the IHT estate. Estate planning becomes more urgent immediately post-sale.
- Tax treatment of business sale proceeds depends significantly on the structure of the sale (shares vs assets), the consideration type (cash, deferred, earn-out), and individual circumstances. Specialist tax advice alongside financial planning is strongly recommended.
Talk to an independent adviser — no obligation
Castle Stonebridge is FCA-regulated and wholly independent. We are not tied to any provider, which means our advice is guided solely by what is right for you.
Book a Free ConsultationYour initial consultation is completely free and carries no obligation.
Common Questions
Frequently Asked Questions
Ready to get the right advice for your situation?
Your free initial consultation is completely without obligation. We will listen, understand your specific circumstances, and tell you honestly whether and how we can help — before we discuss fees.
advice@castlestonebridge.co.ukCastle Stonebridge Limited is an Appointed Representative of Rosemount Financial Solutions (IFA) Limited, which is authorised and regulated by the Financial Conduct Authority. Rosemount Financial Solutions (IFA) Limited is entered on the Financial Services Register under reference 535515. Tax treatment depends on individual circumstances and may change.
Investment & Pensions Risk: Capital is at risk. The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested. Past performance is not a reliable indicator of future results.