You’ve sold your business. How to fund the next chapter

The contract’s been signed and the money has been transferred, so what next? It’s important to consider how the business sale proceeds will support the next phase of your life.

You might have worked with a team of advisers since the pre-exit stage. On the other hand, you may have only decided to speak to someone now. No matter your situation, it’s not too late to get help.

Our 360° approach to advice means that the relationship between your business and personal wealth is fully considered. We work with you to ensure the best outcome for everyone involved in the business sale process.

Making the most of the money from the sale of your business can involve more than just investment growth. Tax mitigation also has an important role. Without a carefully thought-out financial plan, you could end up paying a substantial amount of tax unnecessarily. Our specialist tax advisers can work with you to ensure appropriate and available tax reliefs and incentives are utilised to maximise what you have. This can be done by taking advantage of all your tax allowances and wrappers such as pensions, ISAs, bonds, limited company structures, and other tax-advantaged investments. Key tax-advantaged investments include:

• Venture capital trusts (VCTs)
• Enterprise investment scheme (EIS)
• Seed enterprise investment scheme (SEIS)
• Unregulated collective investment scheme (UCIS)
• Alternative investment market (AIM)

It’s important to note that tax-advantaged investments, such as those listed above, are higher-risk investments that are not suitable for all investors. You should not invest in these unless you are prepared to lose all the money you invest.

We can advise you on inheritance tax mitigation options available. Following the completion of the sale of your business, you have a three-year window to invest back into business relief and benefit from inheritance tax relief immediately. While the inheritance tax benefits are substantial, there is a high level of risk associated with business relief. We can help explain all the potential consequences of this type of investment and the level of risk involved. Given the three-year timeframe, you can also consider this option over a longer period to see if it’s right for you.

For more information on the stages of selling your business, download our guide.

As well as reducing your potential tax liability, it’s important to think about growth. When it comes to investing your business sale proceeds, it’s essential that you get this right.

As with all aspects of selling a business, it’s important not to make any rushed decisions when investing the sale proceeds. At the same time, you probably want to protect your money against inflation. With this in mind, we can invest this money for as long or as little as you would like into various low-risk strategies, including cash, until you’ve made your final decision.

In your previous role, you were used to being in control and making key decisions about large sums. With our investment advisory service, you can exercise this same level of control over your investments. It is designed for people who want to manage their own money but would like help from a professional investment manager. Your investment manager will recommend a portfolio to fit your needs. They will also provide ongoing support with all your investment choices.

But if you’re ready to hand over the reins, our discretionary portfolio service might be more suitable, as a dedicated investment manager can do the hard work for you. Your investment manager will build a bespoke, diversified portfolio for you and then manage it on a day-to-day basis in line with your wishes, giving you peace of mind that your investments are in expert hands.

Moving into the next phase of your life after exiting your business is a big step and is full of important decisions that will shape your financial future. To find out more about how we can help you successfully transfer your business wealth into personal wealth, book a free exit readiness assessment today. You can either book online or call us on 020 7189 2400.