The UK’s retail sector faces another “bloodbath” on the high street next year, according to insolvency specialists. They point to decreased spending and rising unemployment as reasons to expect a wave of administrations echoing the events of early 2009.

In spite of improving sales figures and a boost in sentiment, 86 per cent of insolvency practitioners polled by industry body R3 believe this year’s drop in spending will prompt the collapse of more retailers after Christmas.

Another factor singled out for the predicted disappearance of over 20 household names is creditors “biding their time” until after the peak trading period before they call in loans. January’s VAT increase is a further cause of pessimism for retailers.

“While it would be comforting to think that the worst of the downturn is over, it’s worth remembering that insolvency peaks after a recession ends,” remarked R3 president Peter Sargent. “We urge retailers to seek advice early when there is a better chance of rescue, rather than desperately clinging on, hoping that Christmas will cure all ills.”

In the opening months of 2009, around 22 high-street retail staples went into administration, including Woolworths, music outlet Zavvi, childrenswear chain Adams and tea and coffee merchant Whittard of Chelsea. For up-to-date information on businesses for sale and in administration take a look at our news section.

–>Latest retail businesses for sale.

If you have a successful and profitable magazine title to sell, and a genuine reason for selling it, you are likely to have very few problems doing so. Buyers want to see forecastable future cash flows and authentic reasons for selling. In these circumstances, you can achieve a high price for your publication.

Of course in this day and age the internet is a vital channel for your magazine readers. Even if you have not yet fulfilled your plans for an online version of your title, a detailed plan on how you will create this will usually encourage buyers to be interested.

Timing is vital when selling a magazine title. Proving you can make money from the title is crucial as investors are no longer keen to risk precious cash on a risky forecast alone. Make sure you can show potential buyers that there is money to be made from their purchase.

Understanding your buyers can help you to establish the best way to market your title – talk to industry buyers about synergies and speak to financial buyers about profits – basic really!

Having the best possible advisors on board to help you with the sale will really help you to achieve the best price when selling a magazine title. They will be able to give you an objective view of your business, they will know who the likely buyers are, and will be able to spend time on marketing your magazine for sale. This will allow you to concentrate on running the business instead of getting wrapped up in emotive negotiations. Also don’t forget to get good tax advice not least because selling business assets (i.e. a title) is treated differently from selling business shares. For more information on these issues you can subscribe to the report.

For help on determining the value of a magazine title then please fill out the no obligation business valuation form.

First there was retirement relief, then there was business asset taper relief, and now there is entrepreneurs’ relief. No doubt the next government will try something else! The latest relief has been introduced following the uproar from small business owners who felt that the proposed 18% CGT was an unfair tax levied when they sold their businesses to fund their retirement.

The new relief, available from April 6 2008 will be available in respect of gains made on the disposal of all or part of a business or on disposals of business assets.

The first £1 million of gains that qualify for relief will be charged to capital gains tax at an effective rate of 10 per cent. The £1 million is a cumulative lifetime relief and as such can be used on a single transaction or on a series of transactions. Gains in excess of £1 million will be charged at the normal 18 per cent rate. Of course, this is not so great for entrepreneurs who will buy and sell businesses through out their lifetime. So perhaps entrepreneurs’ relief is a bit of a misnomer.

As such, the new relief is a kind of resurrection of the old retirement relief, which was phased out between 1998 and 2003. The new rules, to be enacted on April 6, are simpler. There is no minimum age limit for entrepreneurs’ relief (under retirement relief you generally had to be 50 plus to get relief). And in general, entrepreneurs’ relief will be available where the relevant conditions are met for a period of one year, instead of the retirement relief qualifying period of up to ten years.

There will be no minimum age limit for the relief. In general the new relief will be available where the relevant conditions are met for a period of one year.

Where a business simply stops trading, rather than is sold, relief will be available on gains on assets formerly used in the business and disposed of within three years of the cessation of the business.

The rules are quite complex and in order to qualify for the relief there a number of conditions that need to be met. We do take a closer look at the draft legislation in our subscribers section of the report. If you are not already a subscriber then please join us and subscribe.

It should be noted that the final legislation has not been seen so there may be some small amendments. We will take a look at the legislation and if there are any relevant changes we will post them here on this blog.