If you are selling your company, there are important actions you must take to properly finalise your affairs. Please note that this is not an exhaustive list, and it is important to check what else may be required.
We have summarised below some of the main steps you need to take if closing your business:
- Your responsibilities when selling a limited company will depend on whether you’re selling your entire shareholding, or the company is selling part of its business.
- Keep staff informed about redundancy terms or relocation packages and be mindful not to breach your employees’ rights.
- If you are selling your entire shareholding, you should appoint new directors before you resign as a director yourself.
- Consider your liability to Capital Gains Tax and whether you can benefit from reliefs including Business Asset Disposal Relief, previously known as Entrepreneurs’ Relief.
- If there are charges against your company, for example a mortgage on your house to secure a business loan, you must let the provider know within 21 days of the sale.
- You may want to transfer your VAT registration to the new owner.