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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15927
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a soon to retire professional.i conduct my professional

Customer Question

I am a soon to retire professional.i conduct my professional life from a building I own.if I sell my professional practice and property to a fellow professional what capital gains do I pay on the property
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me what the nature of your business is and whether you run it through a limited company or as a sole trader please.
Customer: replied 2 years ago.
I am a dentist and a sole trader.i do not have a limited company.
Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer. It will take a while.
Expert:  TonyTax replied 2 years ago.
Hi again.

Provided you meet the criteria as set out in HS275 here, you should qualify for entrepreneurs' relief. If you do, then any gains you make on the disposal of your business and the business premises will be charged to CGT at 10% as opposed to one of or a combination of the regular rates of 18% and 28%.

I hope this helps but let me know if you have nay further questions.
Customer: replied 2 years ago.
What if I sell the practice only and keep the property but sell it later would I then pay increased capital gains tax
Expert:  TonyTax replied 2 years ago.

You have up to three years after the cessation of your business to sell any associated business assets which in your case is the premises. See under "Disposal of assets following cessation of your business" here for confirmation.

The amount of the gain you make on the disposal of the property which is charged to CGT at 10% may be restricted if you received rent at any time after 5 April 2008. See example 4 here.

The first £11,100 of gains you make in any one tax year are exempt from CGT.

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