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THE RESPONSIBILITIES AND REQUIREMENTS OF SELLING YOUR BUSINESS
Benchmark International
THE RESPONSIBILITIES AND REQUIREMENTS OF SELLING YOUR BUSINESS
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When selling your business, there are a number of considerations and responsibilities which vary depending on the type of business that is being sold.
SELF-EMPLOYED SOLE TRADER There are a number of things that a self-employed sole trader must do when selling their business, including telling all members of staff when and why they are selling the business, as well as making clear their relocation packages and redundancy terms if necessary. HMRC must be informed of the sale and the business’ tax affairs must be finalised.
BUSINESS PARTNERSHIP
LIMITED COMPANIES The responsibilities of a limited company owner will be different, depending on whether the company is selling part of the business or selling the entire shareholding. The owner should appoint new directors via Companies House, before resigning as a director themselves. If they have secured finance for the company against their personal property, they must let the provider know within three weeks of the sale.
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The rules will change depending on whether one partner is selling their share of the partnership, or whether the entire partnership is being sold. Staff must be told about the sale, and the VAT registration transfer and tax returns must be completed. If the whole partnership is being sold, the ‘nominated partner’ must send a Partnership Tax Return by the deadline, as well as a personal self assessment tax return.
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For further information about this topic, visit the Benchmark International blog.