Selling your business: your responsibilities
Business partnership
Your responsibilities when selling a partnership depend on whether you鈥檙e selling:
- your share of the partnership
- the entire partnership
Check your business鈥� partnership agreement - it may have restrictions and conditions on the sale.
Staff
If you have anyone working for you, you must tell them about the sale, including:
- when and why you鈥檙e selling the partnership
- details about the redundancy terms or relocation packages you will offer, if required
Make sure you don鈥檛 breach employees鈥� rights when a business changes ownership.
If you鈥檙e stopping self-employment
If you鈥檙e stopping self-employment when you sell the partnership, call HM Revenue and Customs (HMRC) to cancel your Class 2 National Insurance contributions.
VAT registration
If the partnership is registered for VAT, you may be able to transfer the VAT registration number to the new owner.
Tax returns
If you鈥檙e selling your share in the partnership
You must fill out a personal Self Assessment tax return by the deadline.
If you鈥檙e selling the whole partnership
You must:
- make sure the 鈥榥ominated partner鈥� sends a by the deadline
- send your personal Self Assessment tax return by the deadline
Capital Gains Tax
You may have made a 鈥榗apital gain鈥� when selling the partnership (for example the money you get from the sale, or assets from the partnership that you keep).
If this means you need to pay Capital Gains Tax, you may be able to reduce the amount by claiming Entrepreneurs鈥� Relief. You may also be able to claim other reliefs.