On top of the price
Cost of buying a business: fees and taxes on top of the price
Updated
The price is the largest cost of buying a business, not the only one. These are the fees and taxes a buyer pays, each read from the firm's or authority's own page.
Professional fees
Solicitor
Gannons: fees start at £5,000 plus VAT to run the transaction. Rocket Lawyer UK: business purchase legal help from £500.
Source: UK Business Purchase Cost Index
Buy-side adviser
Capital A publishes a buy-side retainer of £5,000 a month for at most six months, with a floor of £15,000.
Source: Capital A: M&A fees
Taxes and official fees
Stamp duty on shares
0.5% of the price on a share purchase completed by stock transfer form.
Source: HMRC Stamp Taxes on Shares Manual STSM021010
Property in England
Non-residential SDLT: nothing up to £150,000, 2% on the next £100,000 and 5% on the rest.
Source: GOV.UK: SDLT non-residential rates
Property in Wales
Non-residential Land Transaction Tax: 0% up to £225,000, 1% to £250,000, 5% to £1,000,000 and 6% above.
Source: Welsh Government: LTT rates and bands
A merger the CMA investigates
The fee runs from £40,000 where the target's UK turnover is £20 million or less to £160,000 above £120 million.
Source: CMA: how to pay merger fees