04: Sale for shares or loan stock

You can sell a company for cash but if you accept shares or loan notes instead of cash, this can defer your CGT liability and may allow you to make use of several annual exemptions against the gain. However in some cases this will reduce your taper relief.

This is more risky than a sale for cash because the shares or loan stock you receive might fall in value.

Selling an unincorporated business in exchange for shares or loan notes does not of itself defer CGT but you could obtain CGT deferral by incorporating your business before its sale.

Great care is needed as these deals can be fraught with tax and other difficulties for the unwary.