Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Almost a third of UK business owners to sell up to fund retirement

by February 14, 2024
February 14, 2024
Almost a third of UK business owners to sell up to fund retirement

Almost one third of UK business owners plan to sell their businesses to help fund their retirement, according to new research.

Business owners across the country have been fighting rising costs from energy bills to higher living wages and it seems for many, now is the time to contemplate retirement. However, planning for retirement and how to fund it has become trickier to plan.

According to the research from leading tax and advisory firm Mazars, not all are considering a clean break from their business. The study examining business owners’ attitudes to succession planning found almost half of business owners said they plan to partially transfer their business to family, such as their children or grandchildren and continue to draw an income from it to fund their retirement. The absence of an immediate end point can mean it is challenging to plan and think about how to fund their retirement and pension plans.

For those considering a full or partial sale, almost two-fifths say they plan to invest the proceeds into a pension, while the same amount plan to sell the business to generate a pot of money they can use to draw income from themselves.

It is not just retirement that business owners should be considering. When owning a business there are many ways business owners choose to remunerate themselves, each with its unique pros and cons. Worryingly, considering significant changes to thresholds in the past few years, two-fifths haven’t reviewed how they take an income for 2 or 3 years. Just one in 10 business owners have done so in the past year and 73% of those who have reviewed in the past year did so before April 2023 when personal tax changes such as an increase in higher and additional rate income tax came into effect.

Mazars are warning that the continued frozen income tax thresholds and the resulting fiscal drag pushing many into higher rate tax bands could mean many are not remunerating themselves in the best possible way. Currently, 39% of business owners are most likely to pay themselves a salary and a bonus (subject to profits), while a quarter 24% take a set annual salary and 24% of business owners said they take cash drawn against a loan account.

Zoe Davies, Partner at Mazars said: “Planning for retirement takes time and many aspects should be considered, especially when it comes to funding your retirement through a business sale. Thinking of any tax implications of a sale should also be a priority as a hefty tax bill might scupper even the best plans of retiring off the proceeds of a sale.

“It is also vital in the build-up to retirement to review how you are taking an income from your business. Reviewing this often and keeping it in mind alongside any exit plans is vital to ensuring a tax-efficient retirement and as much income for retirement as possible.”

Read more:
Almost a third of UK business owners to sell up to fund retirement

0
FacebookTwitterGoogle +Pinterest
previous post
EU policymakers agree deal on ‘AI Act’ to regulate industry
next post
Airbnb ‘reinventing’ itself with £4.8bn share buyback as it looks to go ‘far beyond travel’

You may also like

UK government pledges £500m to expand broadband and...

November 4, 2024

INKBIRD INT-14-BW 4-Probe Wireless Meat Thermometer Review

July 7, 2025

UK drivers for Bolt ride-hailing app pursue worker...

October 6, 2022

Errol Musk claims Tommy Robinson ‘very likely’ to...

January 7, 2025

Christmas party cancellations ‘near Omicron level amid UK...

December 9, 2022

Passport delay warning as five-week strike called

March 17, 2023

Next CEO Lord Wolfson says planning rules are...

December 7, 2023

Bernard Arnault Expands Family Influence at LVMH as...

April 19, 2024

Riverford rewards staff with £1.3m windfall as organic...

February 7, 2025

Investors convert ‘totally worthless’ NFTs into tax write-offs

December 29, 2022

UK government pledges £500m to expand broadband and...

November 4, 2024

INKBIRD INT-14-BW 4-Probe Wireless Meat Thermometer Review

July 7, 2025

UK drivers for Bolt ride-hailing app pursue worker...

October 6, 2022

Errol Musk claims Tommy Robinson ‘very likely’ to...

January 7, 2025

Christmas party cancellations ‘near Omicron level amid UK...

December 9, 2022

Passport delay warning as five-week strike called

March 17, 2023

Next CEO Lord Wolfson says planning rules are...

December 7, 2023

Bernard Arnault Expands Family Influence at LVMH as...

April 19, 2024

Riverford rewards staff with £1.3m windfall as organic...

February 7, 2025

Investors convert ‘totally worthless’ NFTs into tax write-offs

December 29, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • State Department to axe 1,800 employees

      July 11, 2025
    • ‘Nothing to stand on’: Ex-White House physician slams Biden doctor for silence during House GOP grilling

      July 11, 2025
    • JONATHAN TURLEY: Justice Jackson plays pundit to dismay of SCOTUS colleagues

      July 11, 2025
    • Friday Feature: Mt. Haven Microschool

      July 11, 2025
    • Biden cover-up probe heats up as another ex-White House aide sits down with GOP

      July 11, 2025
    • PPE Medpro trial ends with defence accusing DHSC of ‘bad claim’ and pandemic scapegoating

      July 11, 2025

    Categories

    • Business (8,450)
    • Investing (2,116)
    • Politics (16,007)
    • Stocks (3,199)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved