The sale of a company's business can be structured as either:

1. •

   a sale of the business assets owned by the current owner, including goodwill (an asset sale), or

2. •

   a sale of shares if the business is being carried on by a company (a share sale)

The choice between an asset sale or a share sale is determined by tax and non-tax considerations. See Practice Note: Share sale or asset sale—tax considerations for an outline of the differing tax advantages and disadvantages applicable to each option.

This Practice Note summarises the key tax considerations relevant to the sale of assets by a corporate seller to a corporate buyer, both of which are chargeable to UK corporation tax.

In the case of a transfer of a business, special contractual provisions are included in the asset purchase agreement to ensure, so far as possible, that it is a transfer of a business rather than just a transfer of assets, for which see Precedent: Asset purchase agreement—pro-buyer—corporate seller—conditional—long form and the related