Hi
I have been made an offer to buy one a business I run. The business was started as a hobby, and i've never had need for an accountant. (the accounts have always been relatively simple. The income from the same source, the outgoings similar). On top of my day-job, the income from my hobby business has never caused me to leave the 22% income tax zone either!
The offer ammount would leave myself and my business parter each with £100k before any tax.
at 40% income tax, this would give us just £60k !
It hardly seems worth selling up - better to leave the business ticking over, not improving anything, and carrying on as normal. neither of us really want to do that.
How can we dispose of the business without being taxed to death? 40% just seems over the top!
We would both like to use our shares towards a new house each (in addition to a small mortgage). Are there any tax breaks we can get for doing that?
Ideas?