The Broker
Stacks Image 23355
Q1: SE NW England- "I am a sole trader and am considering selling my practice. I have been advised of the tax benefits of incorporating, should I do that before selling?"

A: The price you get should not differ whether you are incorporated on not, although the selling costs will be higher, as the process is more complicated. If you sell as a sole trader now you will be eligible for
Entrepreneurs' Relief tax relief at 10% of the gain in value. If you incorporate your practice you will not be eligible for the Entrepreneurs' Relief until the limited company has traded for at least 12 months.