Business exit planning turns a company you own into money you can live on, without handing more than you must to the taxman. It decides the route out, the timing, and what happens to the proceeds once they land in your estate.
What a business exit adviser actually does
For most owners the business is the largest asset they will ever hold, and selling it is a one-off with no rehearsal. Working with your accountant and solicitor, an adviser makes it deliberate: preparing the business for sale so its numbers stand up to scrutiny, choosing the route that fits your goals, and structuring the shares so the tax reliefs actually apply.
The second half of the job comes after completion. A sale converts an illiquid company into a large, taxable cash sum overnight, reshaping your wealth management and your inheritance tax position. Deciding what to do with the proceeds is part of the exit, not just the deal.
The four ways out, and what each costs you
There is no single “exit”. The route you choose changes both the tax and the timeline. Our business guides go deeper; the shape of the choice is this.
The main exit routes compared
| Route | How it works | Tax & timeline |
|---|---|---|
| Trade sale | A competitor or larger firm buys the company outright. | Fastest to cash; gains up to £1m qualify for BADR. Often 6–12 months. |
| Management buy-out (MBO) | Your own managers buy the business, usually with outside finance. | Continuity of ownership; price often paid over time, so tax and cash arrive in stages. |
| Family succession | Shares pass to the next generation by gift or sale. | May preserve Business Relief and defer CGT, but rarely funds your retirement at once. |
| Wind-down | Trading stops, assets are distributed, the company is closed. | Simplest where there is no buyer; a solvent liquidation can still access capital treatment. |
None is simply “best”. A trade sale is quickest but cedes control at once; an MBO keeps the business in familiar hands but often pays in instalments; succession to family is about people as much as tax. The right one depends on what you want next.
The tax: BADR, and the trap after you sell
Two reliefs dominate the numbers, and they pull in opposite directions.
Business Asset Disposal Relief cuts the Capital Gains Tax on qualifying disposals. From April 2026 the rate is 18%, on the first £1m of gains over your lifetime; gains above that are taxed at the standard rate. To qualify you generally need to have owned the business for at least two years before you sell, which is why planning must start early.
The moment you sell, the shelter disappears
While you own a trading business, Business Relief generally keeps it out of your estate for inheritance tax. Sell it, and that protection ends instantly, the proceeds land in your estate, fully exposed at 40% above your nil-rate bands. A company worth nothing to the taxman one week can leave a seven-figure IHT liability the next. That is why exit and estate planning are one conversation, not two.
Who needs this, and when it pays to start
If your exit is a decade away, or the proceeds will sit inside your allowances, you may not need this yet. Advice earns its keep when real money and deadlines are in play, start the conversation if any of the following is true.
- 1
You expect to exit within three years
Both BADR and Business Relief reward ownership of at least two years, and the structuring that unlocks them often must happen before a buyer appears.
- 2
Your gain will exceed the £1m BADR limit
Above the limit, ordinary Capital Gains Tax applies. How the shares are split, for instance across a spouse, can change the bill materially.
- 3
You are torn between selling and passing it on
A trade sale and a family succession have very different tax outcomes and retirement consequences.
- 4
You have no plan for the proceeds
A large cash sum with no home is an inheritance tax problem waiting to grow. It belongs in the exit plan.
What it costs, and how we vet advisers
Exit advice is usually a fixed fee for defined work, a pre-sale review, a structuring exercise, a plan for the proceeds, then, if you invest the money afterwards, an ongoing fee of around 0.5%–1% a year. Always see the figure in pounds before you commit. Vetted Wealth is free to you: adviser firms pay us, and we introduce, we never advise. Every firm we match you with is FCA-regulated. Compare local specialists through our Devon and Cornwall hubs, and see exactly how we vet advisers first. Investments can fall as well as rise, and this is information, not personal advice.
Key takeaways
- The exit route, trade sale, MBO, family succession or wind-down, sets both the tax and the timeline.
- From April 2026, Business Asset Disposal Relief is 18% on the first £1m of qualifying gains.
- The two-year qualifying periods for BADR and Business Relief are why exit planning has to start early.
- A trading business is sheltered from inheritance tax while you own it; sell, and the proceeds sit in your estate at 40%.
- What you do with the proceeds is part of the exit, where the IHT problem is won or lost.
Where we operate
Vetted Wealth is live across Devon and Cornwall, with further counties opening through 2026. Choose your county to see the towns we cover and the advisers we have vetted there.
Most people start on their county page and then pick their town. If you would rather skip that, use the form on this page, tell us where you are and we will match you with a vetted business exit & succession planning specialist near you.
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This page is information, not personal advice. When you are ready, we will introduce you to an independently vetted, FCA-regulated adviser, free, and with no obligation. Investments can fall as well as rise and you may get back less than you invest.