Lower capital gains tax rate on surgery sales

GPs selling their surgery premises or shares in premises on or after 6 April 2008 will not be hit as hard as expected by proposed revisions to capital gains tax (CGT) thanks to a concession for entrepreneurs, according to accountants.

Yesterday chancellor Alistair Darling responded to criticism of the 18 per cent capital gains tax rate and an end to business taper relief announced last autumn by proposing a 10 per cent rate on gains of up to £1 million for small businesses from 6 April.

Laurence Slavin, partner with Ramsay Brown and Partners, said that with a CGT of 18 per cent, a GP selling a surgery for £225,000 after 6 April which was bought in 1982 for £70,000 would mean a CGT bill of £25,794. The 10 per cent entrepreneur’s rate will reduce the tax to £14,330 –  a £11,464 reduction.

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