Guide
How much is my company worth, and how much of the sale do I keep?
Updated
Your company is worth its maintainable profit times the multiple buyers in your sector pay, less its debt; what you keep depends on Capital Gains Tax. From 6 April 2026 Business Asset Disposal Relief taxes qualifying gains at 18%, up to a £1 million lifetime limit.
From profit to price
A buyer prices the enterprise as maintainable profit times a multiple, then takes off net debt to reach what the shares are worth. UK advisers publish multiples that rise with size, from 3.1x EBITDA at £200k to 8.5x at £10m.
Source: CLFI, EBITDA multiples by industry UK
The tax on the sale
- Business Asset Disposal Relief: 18% on qualifying gains disposed of from 6 April 2026, 14% between 6 April 2025 and 5 April 2026, 10% before.
- The lifetime limit: qualifying gains of £1 million per person.
- Capital Gains Tax without the relief: 18% within the basic rate band and 24% above it.
- The annual allowance: £3,000 of gains tax-free.
The relief rates and dates are HMRC's own.
Source: GOV.UK, Business Asset Disposal Relief
The main rates are on HMRC's Capital Gains Tax rates page.
Source: GOV.UK, Capital Gains Tax rates
The allowance is on HMRC's allowances page.
Source: GOV.UK, Capital Gains Tax allowances
The £1 million lifetime limit is set out in HMRC's 2026 helpsheet HS275.
Source: HMRC, HS275 Business Asset Disposal Relief (2026)
Who qualifies for the relief
For shares, the company must have been your personal company for at least 2 years before the sale: you hold at least 5% of the shares and voting rights and are an officer or employee. A sole trader or partner must have owned the business for at least 2 years.
Source: GOV.UK, Business Asset Disposal Relief
This page states HMRC's published rules; it is not tax advice. A sale should be structured with an adviser before heads of terms are signed.