Goodwill & Practice Sale

When a dental practice owner wants to pass the practice to family or the clinical team rather than sell on the open market, two tax dimensions dominate: capital gains tax (where gift holdover relief under TCGA 1992 s.165 replaces the commercial CGT charge) and inheritance tax (where business property relief under IHTA 1984 s.105, as reformed by FA 2026 Schedule 12, can shelter up to £2.5m at 100% and the excess at 50%). This guide covers every internal transfer route, the holdover-vs-BADR planning decision, the PET 7-year clock, the death-vs-lifetime-gift trade-off, and the NHS contract novation point that makes share transfers structurally attractive.

When a dental partner retires, the continuing partners usually buy out their share. This guide covers how the exit is valued and funded, the retiring partner's capital gains tax and Business Asset Disposal Relief position, deferred and staged consideration, the SDLT angle where the firm owns its premises, and the pension and NHS-contract points, on 2026/27 figures.

When part of your sale price is deferred or tied to future performance, the capital gains tax treatment changes shape. We explain ascertainable versus unascertainable consideration, the two chargeable events created by the Marren v Ingles principle, why BADR often does not reach the earn-out, and how s.280 instalment relief can ease the cash-flow squeeze.

On an asset sale, the agreed price is split between goodwill and tangible equipment, and that line has real tax consequences. Goodwill sits in the CGT and BADR world for the seller, while plant and fixtures move through the capital-allowances system, with balancing charges, AIA and the s.198 election in play. We explain who wins and loses from where the line is drawn.

Business Asset Disposal Relief rose from 14% to 18% on 6 April 2026, worth about £40,000 of extra capital gains tax on a £1m gain. We explain which date governed the rate, why sellers who exchanged unconditionally by 5 April 2026 still keep 14%, and how to plan a disposal at the 18% rate.

Selling a dental practice triggers capital gains tax (CGT) on goodwill and assets, but Business Asset Disposal Relief (BADR) can reduce the rate to 18% in 2026/27. This guide explains the key tax implications, valuation methods, and steps to structure your exit efficiently.

When selling or buying a dental practice, the transaction structure (asset sale or share sale) drives who pays what tax and how goodwill transfers. This guide compares both routes for UK dentists: CGT and Business Asset Disposal Relief, the double-tax trap on a company asset sale, goodwill amortisation relief for the buyer, and the contract-novation versus share-continuity question.

Business Asset Disposal Relief (BADR) cuts your CGT rate to 18% on the first £1m of gains from a dental practice sale in 2026/27, against the standard 24%. But the conditions are strict: you must be a sole trader, partnership member, or director/employee of the practice company for at least 24 months before disposal. Get the rules wrong and you pay 24% on the whole gain.

A well-timed dental practice exit plan can save tens of thousands in tax and increase your sale price. This guide covers the key steps to take 3-5 years before selling, from structuring your accounts to preparing your team and premises.

Goodwill amortisation on a dental practice acquired after 1 April 2019 qualifies for tax relief at 6.5% per year. This guide explains the rules, the exclusions for purchases between 2015 and 2019, and how it affects your practice accounts.

Goodwill stripping means pulling cash out of your dental company as a dividend just before you sell, hoping to shrink the capital gain. Once you net the dividend tax against the capital gains tax you avoid, and add the anti-avoidance risk, it usually costs more than selling clean and claiming Business Asset Disposal Relief. This guide works the 2026/27 numbers.

Dental goodwill valuation in the UK typically uses three methods: earnings multiples, fee income percentages, and market comparisons. Each approach has strengths depending on the practice's NHS/private mix, location, and profitability. This guide explains how each method works with worked examples.

A phased sale of a dental practice can spread capital gains, retain income during transition, and reduce buyer risk. An immediate sale gives clean break and full liquidity. This guide compares both routes on tax, cash flow, and practical fit.

Goodwill typically accounts for 60-80% of a dental practice price, with tangible assets like chairs, X-ray units and surgery fit-out making up the balance. Where the line is drawn matters for tax on both sides: goodwill runs through capital gains tax and Business Asset Disposal Relief for the seller, while the equipment slice moves through capital allowances for the buyer. This guide explains the range, what raises and lowers it, and why the split is worth getting right.

Dental practice valuation in the UK depends on NHS/private mix, location, and earnings. This guide explains the three main methods: EBITDA multiples, goodwill as a percentage of fee income, and asset-based valuation. It covers what drives practice price and how to avoid common mistakes.

Selling a dental practice is a capital event, not a trading one. Without pre-sale planning, you can lose a large slice to CGT. This checklist covers the key steps to take 12 months before you list.