Capital gains tax

Q: I am a GP partner and need advice on capital gains tax (CGT) on the sale of a practice premises share to our new partner. Three full-time partners, for simplicity, Drs A, B and C, bought the surgery in 1995/96 for £240,000. Each partner had a loan and endowment policy for £80,000. When Dr A retired the surgery was valued at £330,000, so Drs B and C bought her share for £110,000. Drs B and C paid Dr A £27,000 by raising another bank loan and took over Dr A's initial loan (an £83,000 interest-only payments loan) until we sold her share to new partner Dr D, in July 2009 for £130,000. This was a third of the surgery's £390,000 valuation at the time. What is the capital gain for Drs B and C if profits are shared equally? We do not have any capital gains in 2009/10 so what will be the taxable capital gain considering the £10,100 tax-free allowance for each partner? Dr C took retirement as a full-time partner and rejoined as a part-time partner in July 2009. Does Dr C qualify for entrepreneurs' relief on her capital gain?


Already subscribed? Log in here

Please enter your details

Forgotten Password?

Forgotten password?

Having trouble signing in?

Contact our online support team at

[DAYS_LEFT] days left of your Medeconomics free trial

Subscribe now

Your free trial has expired

Subscribe now to access Medeconomics

"I did not have to think twice about subscribing to Medeconomics... I find this website the only place I can find an up to date and accurate database of fees"

Pratice Manager, Canterbury