Selling Sole Trader Business to Spouse

J

Johnny67

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Hi,

I hope someone can give me definite clear advise about this query please.

I am a sole trader and thinking of retiring.

Can I sell my business to my spouse ? (not a partnership) or will it be a case that we are seen as one entity?

I know revenue have details where the business is taken over by/or sold to a child, but no mention of spouse?

There is no advice advice online about this.

If I cant sell the business to my spouse, can I give/transfer the business to my spouse for free?

Are there any drawbacks to this?, will I be liable for CGT on the sale or free transfer ?

Thank you.

Johnny
 
Hi Johnny

There is no harm in asking general questions here.

But really you need to pay an accountant who knows all about your personal details to do a proper succession plan for you.

Brendan
 
Yes I have seen it, its a large document and will take some time to work through.

I understand a succession plan is required.

To give some more back ground data, business turn over is about 90,000 euro, profit about half.

Its a sole trader business, although spouse helps out, but is not an employee!

Retiring due to ill health, but wish to pass business over to my spouse.

Surely it must be straight forward, can I sell to my spouse, will I have to pay cgt.

Or can I not sell it to her?


Obviously there are also cgt exemptions that I need to take into account?

Will my spouse be liable for any taxes on receipt of business?
 
I will repeat: Do not make a big decision like this without a fully thought out succession plan written for you by a professional advisor.

You might get the answer to your question online, but you may not be asking the right question.

You might not have any immediate tax consequences of transferring your business to your spouse, but maybe there are other factors to consider and so there might be better ways to do it.

Brendan
 
What exactly are you transferring anyway ?

If you are a sole trader there are no shares involved.

Currently you do the work and you send out the invoices in your name. Your spouse can send out the invoices in their name if they take on the business. They declare the income to Revenue.

If there are business assets like machinery or a van they can be transferred without CGT as shown above.

There may be a tax advantage in declaring the income as belonging to you both.
 
Hi CremeEgg, you are exactly right.

Not share invovled just giving spouse th ebsuiness,they send out the invoices and pay that tax there is a van which can be transferred.

I suppose if I sold my spouse the business, would I be liable for CGT on it?
 
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