TAX TIP OF THE WEEK - Thinking of selling your business, but worried about finding a buyer and the capital gains tax? An EOT may be your answer.

There are a few problems that owners face when trying to sell their business:
There may not be a ready market to sell to
Buyers will most likely want to buy the assets rather than shares meaning you miss out on tax relief

In these scenario’s it may be worth considering if your employees can take over ownership of the business in the form of an Employee Ownership Trust (EOT)

Benefits are:
A ready market for you to sell your shares
The trust can take a loan to fund the purchase based on the business profits
And best of all No capital gains tax for you on sale proceeds

As this is a lot of paperwork, clearances and planning involved in this arrangement it is best to start planning early should be considering a sale.

Hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr