Before selling, establish what the proceeds need to do for your life, obtain a transaction-specific tax estimate and organise how the money will arrive and be held. Bring your accountant, transaction solicitor and financial planner into a shared conversation early enough for their work to inform the sale. Some eligibility conditions depend on your history, so last-minute changes may not achieve the intended result.
Define success in personal terms
Write down what you want the sale to make possible: leaving work, taking a break, funding another venture, supporting family or a combination. Add an annual household spending estimate and any major one-off plans. This provides a more useful test of a deal than comparing its headline price with another founder's exit.
Consider three outcomes: the sale is delayed, the sale completes at a lower price, and the expected sale completes. Keep the household plan workable during negotiations. Be explicit about whether future consultancy income is agreed, simply possible or something you would prefer to avoid.
Give each professional a clear role
The transaction solicitor explains the agreement and obligations. The accountant or tax specialist assesses the transaction's tax treatment and reporting. The financial planner connects personal assets, spending and objectives. Agree who will coordinate assumptions so that the financial plan uses the same completion figures and dates as the tax work.
When selecting regulated investment or pension advice, check the firm and its permissions through the FCA's official checking services. Ask what the engagement includes, whether advice is independent or restricted, and what you will pay. Experience with a business exit should translate into specific work and clear responsibilities.
Reference: FCA: How to check a firm or individual is authorised
Reference: MoneyHelper: Do I need a financial adviser?
Ask tax questions before changing ownership
Business Asset Disposal Relief is not automatic. For ordinary non-EMI company shares, the rules include a two-year qualifying period, employment or office-holder status, trading conditions and tests involving voting and economic rights. EMI shares have different detailed conditions. Ownership changes close to a sale therefore need careful consideration.
Ask for written answers about the structure, likely disposal date, evidence for any relief and treatment of future consideration. A gift of shares, resignation, move overseas or change to the company's activities can raise separate issues. This guide does not establish whether a particular change is effective or suitable.
Reference: GOV.UK: Business Asset Disposal Relief eligibility
Prepare for completion day
Agree the receiving account and transfer process with your advisers in advance. Keep independently verified contact details for everyone involved. Prepare a cash schedule covering tax, fees, living costs and other known payments; the choice of accounts should reflect access requirements and applicable deposit protection.
Also review what stops when you leave: salary, pension contributions, medical cover, life cover and other business-funded benefits. Confirm the position of any personal guarantees with the lender and solicitor. Completing the sale does not by itself document the release of every personal obligation.
- Write a personal spending and objectives brief.
- Reconcile the tax estimate with the latest deal terms.
- Identify benefits and obligations continuing after completion.
- Prepare receiving accounts and verify payment instructions independently.
- Schedule a joint review before signing material changes.
Reference: GOV.UK: Responsibilities when selling a limited company
COMMON QUESTIONS
A little more clarity
How early should personal planning begin?
Begin while you can still evaluate options and before making binding changes. There is no universal lead time; tax eligibility periods, family arrangements and the sale timetable can all matter.
Do I need a financial planner if I already have an accountant?
Their roles can complement each other. An accountant may handle the transaction tax while a regulated financial planner advises on personal pensions and investments. Check the actual scope offered by each.
Should I transfer shares to my spouse before selling?
Do not assume that this creates an additional relief entitlement. Each person's circumstances, share rights, timing and the wider transaction need specific tax and legal advice.
Sources & further reading
Official guidance checked on . Rules and individual circumstances can change the answer.
- GOV.UK: Business Asset Disposal Relief eligibility
- FCA: How to check a firm or individual is authorised
- GOV.UK: Responsibilities when selling a limited company
- MoneyHelper: Do I need a financial adviser?
This guide does not assess your circumstances or recommend a product, investment or tax arrangement. Tell us about a correction.