Life after exit: what should you do with the proceeds of your business sale?

Selling your business marks the beginning of a new chapter.

Once the deal is complete and the money lands in your account, the key question becomes: what’s next?

As you likely have more time and money than before, the sale may give you the chance to redefine your long-term goals and build a future based on your dreams. It’s also important to ensure your wealth remains efficient and has the best chance of keeping pace with inflation.

Whatever your ambitions, selling your business is the ideal time to revisit your financial plan and ensure the proceeds of the sale continue to support you in the years ahead.

Read on to find out what to do with the money you make from selling your business.

Your long-term goals may change

After years of building a company, you may finally have the time and freedom to focus on other goals once it’s sold.

Whether you want to retire, work for someone else, or even start a new venture, you may want to review your goals and adjust your financial plan accordingly.

For example, the proceeds from the sale may allow you to retire earlier than you’d originally planned. If so, your retirement income may need to last longer than previously expected, so you’ll need to adjust your plan accordingly.

By clarifying your new goals early, you can build a plan that aligns your wealth with your life. This can help ensure the proceeds of your hard work support not just your financial security, but also your sense of purpose.

A financial planner can help you create new goals and incorporate your business sale into your long-term plan.

It’s important to make sure your wealth remains efficient and has the chance to grow

Depending on the structure of your sale, you may have access to a significant amount of cash once it’s complete. As such, it’s important to make sure your wealth remains efficient and keeps pace with inflation.

Remember, cash is less likely to maintain its purchasing power over time when compared to market investments. You can read more about this in our previous article on the topic.

To keep your wealth efficient and to help it grow over time, you may want to consider making the most of your tax-efficient investment and savings options, such as:

Pensions – In 2025/26, the Annual Allowance allows you to invest up to £60,000 a year in your pension or 100% of your earnings, whichever is lower. You can also backdate any unused Annual Allowance for three years.
ISAs – You can save and invest up to £20,000 a year (2025/26) across your ISAs.
Charitable donations – Donations to charities are boosted by an automatic 20% tax relief when made through Gift Aid, and higher- and additional-rate taxpayers can reclaim a further 20% and 25%, respectively.
Venture Capital Trusts (VCTs) – The annual limit for VCTs is £200,000 (2025/26), and you can claim 30% Income Tax relief upfront, provided you hold the shares for at least five years. However, VCTs can be risky investments, so it’s important to speak to a financial planner before investing.

A financial planner can help keep your wealth efficient and choose the right strategies based on your risk profile, time horizon, and wider financial goals.

You may need to explore different estate planning strategies

One of your main goals after selling your business may be to preserve the proceeds for your future beneficiaries to ensure they are supported after your death.

However, once the business is sold, the proceeds no longer qualify for Business Relief (BR) and will usually form part of your estate, which could potentially increase your Inheritance Tax (IHT) liability.

It may be possible to regain some BR eligibility by reinvesting the proceeds into a qualifying scheme. Provided you hold these investments for at least two years and own them at the time of your death, they could receive up to 100% IHT relief.

You might also consider other estate planning strategies to reduce IHT, such as gifting during your lifetime, setting up trusts, or leaving part of your estate to charity.

A financial planner can help you reassess your estate plan in light of the sale, ensuring your legacy is protected for your loved ones.

Get in touch

If you’ve sold your business or are preparing to, a financial planner can help you create a clear and structured plan for life after the sale. They can work with you to define your goals, map out your income needs, and ensure the proceeds are invested and protected in a way that supports your long-term ambitions.

To speak to a financial planner, get in touch.

Email [email protected] or call us on 01625 466360.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.