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Hi.COMPLETE DISPOSALIf the business, the business premises and the residence are sold, you will need to divide the gain between that part of the gain related to the residence from the part related to the business itself (the goodwill) and the business premises.Those who lived in the residence will qualify for private residence relief on their shares of the residence gain depending on how long they lived in it during their part ownership of it. HS283 has more information on private residence relief. The gains of those who did not live in the residence will be taxable in full at 18%, 28% or a combination of the two rates depending on the sum of their respective shares of the gain and their respective incomes.Each partner may qualify for entrepreneurs' relief on their respective shares of the gain from the disposal of the business goodwill and other business assets such as the premises. You can read about the qualification criteria for ER in HS275. Qualification for ER limits the Capital Gains Tax charge to a rate of 10%. If any of you intends to invest in another business, you may qualify for business asset holdover relief which allows you to defer some or all of your gain and any liability to Capital Gains Tax until a subsequent business disposal. Read about business asset rollover relief in HS290.CREATING A LEASE OR LEASESTake a look at HS292 for information on the tax implications of creating and selling new leases. As you will read, a 21 year lease is a short lease. The calculations of the amount of any premium chargeable to Capital Gains Tax and the amount chargeable to income tax are complex and will require you to have a property agent produce valuations of the property including its freehold reversion value as well as having a business valuation done. See pages 2 and 3 of HS275.Every individual has an exemption from CGT for the first £11,000 of gains they make in any one tax year. There is some useful information on CGT here and on leases and tax here.Give the amount of money and the number of individuals involved, you ought to seek out some face to face advice from an accountant or tax adviser so that the whole matter can be looked at in greater detail as I can really only give you a few pointers from here.I hope this helps but let me know if you have any further questions.