Exit Planning
Effective exit planning is essential for business owners looking to transition ownership, release value, or restructure their affairs in a tax‑efficient and strategically sound manner.
Whether the objective is to wind down operations, pass wealth to the next generation, prepare the business for sale, or redistribute shares to key individuals, a carefully structured exit plan can significantly improve financial outcomes and minimise tax exposure.
Exit routes vary widely depending on commercial priorities, shareholder objectives, and the nature of the business. Thoughtful planning ensures that the chosen strategy is implemented efficiently, meets all compliance requirements, and supports both immediate and long‑term goals.
Key Exit Routes
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Share Gifts and Family Succession
Gifting shares can be an effective way to transfer wealth or support succession plans. Getting the structure right, including valuation, timing and future control, is essential to ensure the gift fits broader estate and business goals.
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Sale or Partial Exit
A full or partial exit may involve a trade sale, management buyout, share buyback, a sale to an Employee Ownership Trust or a staged exit. Each route has different tax and commercial considerations, so early planning helps optimise the position and deliver a clean transition.
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Share Restructuring Prior to Exit
Restructuring share capital before exiting can help align ownership and prepare the business for succession or sale. This may include group restructuring, introducing new share classes or simplifying existing structures, and must be managed carefully to remain compliant.
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Business Wind‑Down and Asset Disposal
Where a sale is not the preferred route, owners may instead wind down the business and extract value through dividends, asset transfers or final distributions. Thoughtful planning ensures the process is efficient and supports a smooth move into retirement or new ventures.
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Members’ Voluntary Liquidation (MVL)
An MVL is a formal process for closing a solvent company and releasing value to shareholders tax‑efficiently. It is commonly used when trading has ceased or profits need to be extracted. We can support the planning and coordination with insolvency practitioners. A smaller solvent companies, a dissolution may be more appropriate.
Key Tax Reliefs
Depending on the exit route, key reliefs may include:
- Business Asset Disposal Relief
- Gift relief / holdover relief
- Incorporation relief (when assets are transferred into a new entity)
- Substantial Shareholding Exemption (for disposals by companies)
Key Tax Issues to Consider
Additional considerations may include:
- Stamp duty and stamp duty reserve tax implications
- Inheritance tax planning opportunities
- Employment Related Securities rules affecting employee exits or gifted shares
We ensure the exit is structured to make full use of the reliefs available while staying compliant with relevant legislation.
Our Process
When supporting business owners through an exit, we follow a clear and comprehensive process:
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Initial Exit Planning Review
Understanding your personal, commercial, and financial aims and objectives, and identifying suitable exit strategies.
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Strategic and Tax Analysis
Reviewing share structures, asset positions, group arrangements, and applicable tax reliefs.
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Implementation and Documentation
Preparing the necessary tax clearance submissions to HMRC, restructuring documents, valuations, and liaising with legal and insolvency specialists where needed.
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Completion and Ongoing Support
Ensuring the exit is completed smoothly and supporting shareholders with future tax planning where relevant.
Focused on Your Objectives
Our advice is shaped by what matters most to you, whether that is maximising after‑tax proceeds, passing wealth to family members, reducing ongoing administrative burdens, or ensuring a clean transition for your business.
You can be confident that your exit plan will be structured to achieve your commercial goals while maintaining full compliance and optimising tax efficiency.
Our Tax Group “A Brief Guide to…” publications:
Seed Enterprise Investment Scheme
Share Ownership for Employees EMI