Is it easy to change a business to someone else?

Kayalana99

Short explanation your not actually selling it to them but giving it to them?

GRM

Depends, what is the status of the business? Sole trader, partnership, Ltd, PLC?

Kayalana99

Sole trader, just a small business, if it makes a difference their is stock involved which would if allowed just transfer over as well? Basically just as it is

CKhalvashi

Kayalana99 wrote: »

Sole trader, just a small business, if it makes a difference their is stock involved which would if allowed just transfer over as well? Basically just as it is

You de-register as self-employed and fill a final tax return (due by 31st Jan 2015, or if transfer is after 6th April, another in 2016), assuming there won't be the requirement to make one.

New owner registers as self-employed and continues to trade.

CK

InsideInsurance

Kayalana99 wrote: »

Short explanation your not actually selling it to them but giving it to them?

The business doesnt exist as a legal entity, there is only you when you are a sole trader.

You can transfer the articles you use to another party and so then it simply comes down to any service providers (eg webhosts, landlords etc) willingness to transfer contracts to the new sole trader.

Kayalana99

Awesome thanks guys (y)

Pennywise

As a sole trader, just remember that debts, contracts and liabilities stay with you unless the third party agrees to release you from your obligations.

This may relate to equipment on lease/hire, property leases, guarantees/warranties to ex-customers, etc.

Just can't just "give" away your business and walk away from your responsibilities and liabilities. You can "give" your assets, i.e. stock, equipment, etc., but you can't just give your liabilities and responsibilities.

Kayalana99

Thank you for your time, non of that apples in this situation tho :-)

paddyrg

Just piping in - I suspect there could be tax liabilities if we're talking large numbers. For instance £100k in stock is the same as £100k in cash to a sole trader as I understand it - and so the relationship with the receiver will determine if there is inheritance tax to pay, for instance.

http://www.hmrc.gov.uk/cgt/intro/gifts-inherit-divorce.htm

I may be wrong, perhaps a statutory accountant or tax advisor reading here can confirm/deny whether OP should see an accountant?