Selling up business for lump sum
edited 28 April 2018 at 8:40AM in Small Biz & Charities' MoneySaving
9 replies 1.5K views
I may have a potential buyer for my business netting around £200,000+Vat. This would be intended for my retirement but would mean 40% to the tax man because of existing earnings. I don't want to avoid paying tax, I want to pay it as I draw from it over a period of years. What if for example, I set up a new sole-trader business buying and selling Gold, Silver, Copper etc. Wouldn't that just become stock that I could potentially 'Sit on' where the value may go up or down? Then through my retirement as I converted said Gold into cash I would pay tax on what I draw each year. Limiting what I draw to be within the basic rate threshold. This would still be a business, is it legal? What is the difference between doing this and re-investing £200k in housing etc. To me it's just easier to convert back into cash as and when it's needed and then pay tax on it.
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