You’ve achieved the milestone: your business is sold, and you’re sitting on the most significant liquidity event of your career. But as the dust settles and the initial excitement fades, a new challenge emerges – how do you protect and grow your newfound wealth in a way that minimises tax and secures your future?

The truth is, the decisions you make immediately after a business sale can have lifelong implications for your financial wellbeing. Without careful, tax-efficient planning, you risk losing a significant portion of your proceeds to the taxman, or missing out on opportunities to create a lasting legacy.

Here’s how to approach wealth planning after a business sale, drawing on proven strategies from The Exit Roadmap by Chris Spratling.

1. Take Stock Before You Invest

Pause and reflect before making any big moves.

– Deposit the proceeds in secure accounts to give yourself time and breathing space.

– Avoid rushing into investments or significant lifestyle upgrades.

– Seek independent, holistic advice, preferably from an advisor who specialises in post-sale wealth.

This initial “cooling-off” period is essential to avoid costly, emotional decisions.

2. Review Your Tax Position Immediately

A business sale often triggers capital gains tax (CGT) and may impact your income tax and inheritance tax exposure.

– Ensure all available reliefs (such as Business Asset Disposal Relief) have been claimed correctly.

– If you’ve received deferred or staged payments, plan for when additional tax liabilities might arise.

– Coordinate with your accountant and wealth advisor to forecast your tax position for the coming years.

3. Build a Tax-Efficient Investment Portfolio

The days of a single business as your main asset are over.

– Diversify your investments across asset classes: equities, bonds, property, and alternatives.

– Utilise tax-efficient wrappers such as ISAs, pensions, and (where appropriate) VCTs and EIS investments.

– Consider using a Family Investment Company (FIC) or trusts for intergenerational planning.

Tax efficiency now can mean thousands more in your pocket over time.

4. Estate and Succession Planning

Wealth from a business sale often changes your inheritance tax (IHT) risk profile.

– Consider making gifts to family or charitable trusts while alive to use annual allowances and potentially reduce IHT.

– Review and update your will, Lasting Powers of Attorney, and any existing trusts.

– Engage with your family early to ensure a smooth, transparent plan for the future.

5. Plan Your Income Stream

Replace your business income with a sustainable drawdown strategy.

– Use a mix of dividend income, interest, rental yield, and, where appropriate, capital withdrawals.

– Factor in your personal lifestyle, future ambitions, and planned large expenditures.

– Monitor and adapt your plan annually as tax laws and your situation evolve.

6. Consider Philanthropy and Giving Back

For many entrepreneurs, a life-changing exit is an opportunity to make a meaningful impact.

– Explore creating a charitable trust or donor-advised fund for tax-effective giving.

– Gift Aid and other schemes can enhance the value of your donations.

7. Work With the Right Team

Post-exit, your financial life will be more complex.

– Build a team of trusted advisors (wealth, tax, legal, and estate specialists).

– Meet at least annually to review your plan, investment performance, and tax changes.

Final Thoughts: Protect Your Legacy, Not Just Your Wealth

Tax-efficient wealth planning is about more than minimising tax—it’s about turning your entrepreneurial success into a secure, lasting legacy for yourself and those you care about.

Your Exit Starts Here

If you’re wondering whether you’re truly ready to sell, don’t leave it to chance. Take the Exit Readiness Survey today at www.chalkhillblue.org/exitreadiness-survey and get a clear picture of where you stand, and what to do next.

Looking for the complete roadmap to a successful exit? Order The Exit Roadmap by Chris Spratling on Amazon – a practical, step-by-step guide for ambitious entrepreneurs ready to maximise value, minimise stress, and exit on their own terms.

For more insights and real-world advice, follow Chris Spratling on LinkedIn. Start your journey to a successful exit with clarity and confidence.