Considering selling business, early retirement

[CoaxMetal]

I don't know do you guys get a lot of these kind of threads, but I was reading through some old stuff and I noted a thread where someone said prior to going to a financial adviser, maybe run through some info on this forum first and see can anyone pitch in to see did I miss anything major...

I'm planning on selling my business and business property next year, I'm hoping to take advantage of this tax break: (source @ citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_gains_tax.html)

''Gains made on the disposal of property acquired (by purchase, gift or inheritance) between 7 December 2011 and 31 December 2014 and held for more than 4 years but less than 7 years are exempt from CGT. Disposal of the property must take place on or after 1 January 2018. For example, any gain from a property bought on 1 June 2012 and sold on 1 July 2018 is exempt from CGT.''

I bought this business and property within that timeframe, so my reading is that if I sell this business property and business assets I should be exempt from CGT.

rest of post split to a separate thread - moderator

 

[Brendan Burgess]

I bought this business and property within that timeframe, so my reading is that if I sell this business property and business assets I should be exempt from CGT.

Hi Coax

There seems to be two separate issues here.

First of all, the tax treatment of the sale of your property and your business.
Secondly, how do you invest the proceeds - I have moved this to a separate thread.

I am not a tax expert, but as far as I know, the CGT exemption applies to properties only and not to business assets as such.

Did you buy them separately?

Do you own the property in your own name or is the property held in a company? If so, does the same company own the business?

There is Entrepreneurial Relief for people selling their business, but I don't know how it works.

This is a very complex area. You need to do some serious tax planning now that means paying someone to do a proactive tax plan. There might be things you can do now to make the disposal more tax efficient next year.

You refer to Ireland a lot. Are you Irish resident and domiciled? If not, it's even more complex.

Brendan

 

[CoaxMetal]

Hi Brendan,

Thanks for breaking my questions down more simply.

''I am not a tax expert, but as far as I know, the CGT exemption applies to properties only and not to business assets as such. Did you buy them separately? ''

Yeah I think you are correct re: the business assets not counting for the exemption. I bought just the property for 300k around 5 years ago, the business I created myself and paid nothing for (it's medical so when i refer to ''assets'' im referring to mainly goodwill, patient list, equipment).

Overall I expect the property to have accrued a good amount of value (i'd estimate it's maybe worth 450k at this point) as it was undervalued at the time. I have not gotten the property or ''goodwill/assets'' valued as i'm still in the planning stage but i'm basing this on nearby property sales.

I am not registered as a company, just sole trading, and the property is in my name. I am an Irish resident, Irish citizen and domiciled here.

''This is a very complex area.''

Tell me about it! Thanks for reply

 

[Brendan Burgess]

OK, the tax treatment of the building you bought is not complex. You bought it within the prescribed period so you get the CGT exemption.

You do need advice on the business. It's a separate issue. There are a few firms who specialise in helping people to sell their businesses. The time to talk to them is now and they will advise you on the tax aspects as well.

Brendan

 

[galwegian44]

There are a few firms who specialise in helping people to sell their businesses.

Brendan

Hi Brendan,

I've had a search through the "Recommend Advisors" forum looking for references or recommendations of firms who "specialise in helping people to sell their business" but hit a blank wall. Could you, or any other contributor provide any information on these firms?

Thanks in advance.