Selling a company...profits?

[sinbadsailor]

In an example a single director runs his own company. The company becomes very profitable and he gets and offer from a larger company to sell his company.
How is that sale money treated if the director were to take the offer and cut all ties with his former company?

Are there investment options available to make the money to be more efficent, while accessible?

 

[Importer]

In its most basic form,the member or shareholder would be selling his shares in the company. He would pay capital gains tax on the difference between the selling price and the original purchase price of those shares.

 

[Brendan Burgess]

You need to get specialist tax advice when planning a sale of a company.

You should get this well in advance of the sale.

You probably should be diverting as much as possible into a pension fund.

You might also keep your own salary low, so that you pay a combination of Corporation Tax and CGT on the profits instead of income tax.

Brendan