Owner Managed Businesses

by Andy Rainford

Revised and up to date for 2025/26. With the number of owner managed businesses on the rise, clients will expect you to be familiar with the complex rules. This course guides you through the tax, incorporation, and income issues that arise at each stage of a business’s life.

price £100+vat
cpd hours 4 CPD hours
access 120 days' access

Use ACPD101 for 10% off any purchase.

This course will enable you to

  • Get to grips with the basics of owner managed businesses (OMBs)
  • Handle issues related to business growth such as capital expenditure and VAT registration
  • Advise on when and how incorporation becomes a sensible option
  • Ensure your clients generate profit in a tax efficient way
  • Offer support on whether to sell a business or pass it on to the "next generation"

About the course

There has been a significant increase in the number of owner managed businesses (OMBs) in recent years. Whether sole traders, limited companies or partnerships, these businesses face complex rules around setup, growth, and eventual exit. As accountants, it’s our role to guide clients through these challenges — from tax efficiency and incorporation decisions to succession planning.

This course provides a comprehensive overview of OMBs, covering tax considerations, incorporation, income structuring, and business exit strategies. You'll explore the key issues that arise at different stages of the business life cycle, including capital expenditure, VAT registration, profit extraction, and disposal options.

By completing this course, you’ll be equipped to support your clients more confidently and strategically — helping them structure their business for growth, reduce tax liabilities, and make informed decisions about selling or passing on their business.

Look inside

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Contents

  • Overview
    • Explaining tax for owner managed businesses
    • What is an OMB?
    • Creating an OMB
    • Trade vs business
  • The early years
    • The early days of a business
    • HMRC registration
    • Tax years
    • Working out the profits
    • Business expenditure
    • Reporting
  • Growth
    • Key steps for company growth
    • Capital expenditure
    • Annual investment allowance
    • Working out AIA
    • The VAT system
    • VAT sales and invoices
    • VAT returns and penalties
  • Incorporation
    • In good company
    • The advantages of trading as a limited company
    • Corporation tax
    • To incorporate or not?
    • The incorporation process
    • Option 2: Holdover relief route
    • Option 3: Sale to the company
  • Profit extraction
    • Who profits?
    • Extracting profit from your business
    • Salary v dividends
    • Salary first
    • Other methods are available!
    • Directors’ loan accounts
  • Selling the business
    • An offer too good to resist
    • Key issues when selling a business
    • Selling the company business
    • The base cost
    • Personally owned assets
    • What if the proceeds aren’t wholly upfront cash?
    • Potential tax savings
  • Passing the business on
    • The business as a legacy
    • Passing on to a new generation
    • IHT and lifetime transfers
    • Business property relief
    • Qualifying for BPR
    • Problems with loans

How it works

Author

Andy Rainford

Andrew Rainford BA (Hons), ATT, CTA trained and qualified with an independent London firm of accountants, and subsequently worked on EY's personal tax consultancy team.

Now based in North Wales, he runs his own tax consultancy and writing business, Red Dragon Consulting, working directly for private clients and also supporting other tax advisers.

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Total CPD unitshourshours4 unitshourshours21 units20 hours21 hours1,500+ unitshourshours1,500+ unitshourshours
Access period120 days120 days12 months12+ months
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