Readers’ forum: How will proceeds of company sale be taxed?

I have a client who is an independent financial adviser (IFA) regulated by the Financial Conduct Authority (FCA). There are three directors and shareholders. The company was started in 1991 and the shareholders have been the same throughout. They now wish to sell up and retire but the FCA will not let them sell the shares only the business. They paid nothing for the ‘goodwill’ which is what the company will be selling for £700 000.

According to my thinking the company will have a capital gain of £700 000 and will pay 25% corporation tax on that.

The shareholders will then want to wind the company up but it could be some time before the FCA will permit this.

As it is the proceeds of the sale will be paid in three tranches over now one year and then two years. During this...