How much would I need to sell my company for?

[johndillon]

Hello all,
how much would I need to sell my company for to get £20million after all taxes etc?

J

[darthblingbling]

At least 20 million

[bd6759]

£2, then invest proceeds in winning euro millions ticket.

[johndillon]

The advice so far as been invaluable.

[pawncob]

..........................................................................................................................this represents one end of a piece of string..................

[robbob]

Hmmmm - not sure why the level of sarcasm is involved here - presumably thats on the basis that for large sums like this you are much better placed seeking specific paid for advise (from your current advisor) so that the chances are minimised that the calcs could be way out - this could very well be the case as the answer depends on specifics.

Anyway lets look at a rough and ready calc to get you up an running - hopefully some of the CGT experts will advise if i have missed something.

If its 10 million lifetime allowance that you have available for lower rate via entrepreneurs relief

its potentially £10 mill at 10% and 10 mill at 28% -if you received 20 mill

to get back to 20 mill net that would be 25,280,012.82

10 mill at 10% = 1 mill
15.28 mill at 28% = 4.28 mill

total tax paid 5.28 mill tax

there is also an extra 12.82 on top that will cost you 82p tax and enough (£12.00) for my statutory 6 pints of beer in the till at my local Thursday night / saturday afternoon the choice is yours.

Note if you are MA in disguise and are thinking of selling your footy club soon don't forget to factor in the potential tax there - if thats the case it would make sense to immediately invest £600 mill in available funds for the manager to spend as he sees fit in the next 30 days.

[darthblingbling]

Go live in Dubai for 5 years.

[bd6759]

Hmmmm - not sure why the level of sarcasm is involved here - presumably thats on the basis that for large sums like this you are much better placed seeking specific paid for advise (from your current advisor) so that the chances are minimised that the calcs could be way out - this could very well be the case as the answer depends on specifics.

Maybe it's because there isn't a shred of information upon which to base a reply.

Your calculations assumes he got the business for nothing and qualifies for ER, and also forgets that the upper CGT rate is 20%. Unless of course it is a residential property rental business, but in whch case ER wouldn't apply.

[SteLacca]

As bd6759 has alluded to, there is a woefully small amount of information provided, and certainly not anything that would allow anyone to provide even a qualified response to without qualifying every singe aspect of the reply.

We need to know cost, nature of the business, how long it's been help for, whether or not there are any associated disposals, and if so are this included in, or in addition to the £2m, etc . etc.