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Business Valuation Calculator
What your business might be worth, what tax a sale would cost, and what you and your family would actually keep
Business Valuation and Exit Proceeds Calculator 2026/27
What is your business worth, and what would you actually keep?
A rough value from profit and a multiple, then the tax on a sale. It asks separately whether you and your spouse or partner qualify for Business Asset Disposal Relief, so you can see what their shareholding is worth.
Based on tax rates and allowances in England, 2026/27
Small private companies often sell at 3 to 6 times profit. Sector, growth and how much the business depends on you all move it.
Broadly: a trading company, you hold 5% or more of shares and votes, and you have been an officer or employee for two years.
Only if they hold shares. They need 5% of the shares and votes, and a role as an officer or employee, for two years before the sale.
Optional. Leave blank and their base cost is treated as nil. Shares you gave them keep your original cost.
What the numbers say
Enter the profit, a multiple, your shareholding and your other income to see a value and the tax on a sale.
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Where your share of the proceeds goes
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Illustrative only, not financial advice and not a valuation. Value is profit multiplied by the multiple you enter, plus net cash. A real price depends on the buyer, the deal structure, earn-outs and due diligence. Based on tax rates and allowances in England, 2026/27. Capital gains tax rates are the same across the UK. Business Asset Disposal Relief taxes the first £1,000,000 of qualifying gains per person, over a lifetime, at 18%. The rest is taxed at 18% or 24%, depending on your remaining basic rate band. Relief gains use the basic rate band first. The £3,000 annual exempt amount is ignored to keep the workings clear. It would reduce the tax slightly, by no more than £720 each. A spouse or partner gets the relief only if they qualify in their own right, so the calculator asks separately. Their base cost is nil unless you enter one. Their other income is assumed to use up the basic rate band, and none of their relief limit is assumed used. The results depend entirely on what you enter and your circumstances may differ. Talk your figures through with us, the first conversation is free.
The value is a guess. The tax is not
Most private businesses sell for a multiple of adjusted profit, plus the cash in the company less any debt. The multiple is the guess. Three to six times is common for small firms, higher for businesses with recurring revenue and a management team that runs without the owner. The calculator above lets you try your own.
The tax is far more predictable, and it is where planning changes the outcome. Business Asset Disposal Relief taxes the first £1,000,000 of qualifying gains at 18%, per person, over a lifetime. Above that the rate is 24%. On a £2,500,000 sale held entirely by one person, roughly £1,500,000 is taxed at the higher rate. Held between two qualifying spouses, a second £1,000,000 gets the lower rate. The saving is worth tens of thousands, but the shares and the role have to be in place two years before the sale.
That two year clock is why we tell owners to start before a buyer appears. Our Business Asset Disposal Relief calculator checks the qualifying conditions in detail. Sold your business covers what to do with the proceeds. And why your business is not a financial plan explains why the exit is the start of the planning, not the end.
Frazer James is an independent, FCA-regulated firm of Certified Financial Planners. Advice covers the whole of the market, there is no initial fee, and the first meeting is free.
Relief is per person
Each qualifying shareholder has their own £1,000,000 at 18%. A spouse or partner who holds shares and a role for two years brings a second limit to the sale.
The two year clock
The shares, the 5% holding and the officer or employee role all have to be in place for two years before the sale. Restructuring the month before completion does not work.
Cash in the company counts
Surplus cash adds to the price, but too much of it can put the trading status at risk and with it the relief. Extracting it through a pension before the sale is often the answer.
Since working together, I feel more organised, more secure and more positive about the future. The advice has been exceptionally valuable, financially, professionally and personally.
Questions people ask about valuing and selling a business
How do I value my small business?
The common shortcut is adjusted profit multiplied by a sector multiple, plus net cash. Adjusted profit adds back the owner’s salary above market rate and one-off costs. Multiples for small private firms often run from three to six times. A real valuation looks at growth, customer concentration, contracts and how much of the business depends on you.
How much tax do I pay when I sell my business?
With Business Asset Disposal Relief, 18% on the first £1,000,000 of gains over your lifetime. Above that, 18% or 24% depending on your other income. Without the relief, 18% within your remaining basic rate band and 24% above it. The £3,000 annual exempt amount also applies, though the calculator leaves it out to keep the workings clear. The calculator above shows your figures.
Do I qualify for Business Asset Disposal Relief?
Broadly, three conditions. The company must be a trading company. You must hold at least 5% of the shares and votes. And you must have been an officer or employee for the two years before the sale. All three have to be met throughout the two years. Our separate Business Asset Disposal Relief calculator goes through the conditions in detail.
Can my spouse use their own Business Asset Disposal Relief?
Yes, if they qualify in their own right. That means holding at least 5% of the shares and being an officer or employee of the company for the two years before the sale. A transfer of shares to a spouse is free of capital gains tax. But the two year clock starts when they receive the shares and take the role. The calculator asks whether they qualify, rather than assuming it.
What should I do with the proceeds?
That is the plan the sale pays for. Pension contributions before completion can use the company’s carry forward and reduce corporation tax. After completion, the cash sits in your estate for inheritance tax, and it needs to produce the income the business used to. Our sold your business guide covers the first twelve months.
Reviewed by
BSc, MLIBF, PETR, Chartered ALIBF · Co-Founder and Chartered Associate
Chris has spent over a decade in financial planning and specialises in research and technical analysis. He checks every figure and calculation on this page before it is published.
TALK TO A CERTIFIED FINANCIAL PLANNER
A free, no-obligation conversation about your exit, the two year clock and what you would actually keep. The earlier it starts, the more the numbers can change. No cost, and no pressure to proceed.