Tax change costs GPs £15,000

GPs thinking of selling on surgery premises or shares in premises after April 2008 will face a massively increased tax bill after chancellor Alistair Darling brought in wide-ranging changes to capital gains tax this week.

In his first pre-budget report Mr Darling announced that the complicated system of exemptions and taper relief would be abolished and instead a new lower base rate of 18 per cent capital gains tax would apply.

This will affect all those who bought property after March 1982 and before April 1998 and are set to retire or sell their shares in premises after 6 April 2008.

Stuart Williamson, partner in the specialist medical accounting firm Williamson West, said GPs could face paying an extra £15,000 in tax.

‘We’ve worked out the impact for one of our clients due to leave his practice next year. If he retires in March next year then his tax bill will be £6,000 but if he sells after 6 April next year then his tax bill will be in excess of £20,000. It’s very much retrospective taxation.’

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