Selling the premises

1. Advising the business

1.1. Capital gain - what is the base cost? (companies only - indexation to December 2017 only)

1.2. Who is the purchaser and what is their tax profile?

1.3. Negotiations with the purchaser - what are the important tax issues for each (e.g. can the purchaser claim capital allowances? Will they need to pay SDLT or equivalent? What is the VAT position?)

1.4. Are there losses to shelter any gain?

1.5. Is it only the building, or part of a going concern (business cessation)?

1.6. How is the property held? Individual, company or trust? What rate of tax will apply?

1.7. Timing of disposal - e.g defer until 6 April or after accounting period end to defer tax payment?

1.8. Any provisions / dilapidations?

1.9. Are the proceeds earmarked? Possible impications of cash on balance sheet after the sale (BADR, etc)

1.10. If sale is by a company, do the shareholders want to extract the proceeds from the company?

2. Capital gains

2.1. Home

2.1.1. Private residence relief

2.1.2. Apportion gain

2.1.3. Avoid using part of home exclusively for business

2.2. Rollover relief

2.2.1. Qualifying asset

2.2.2. Purchased 12m before, 36m after disposal

2.2.3. Partial relief where no all proceeds reinvested

2.2.4. May apply to group members

2.3. Disposal of a lease

2.4. BADR? Individuals only

2.4.1. Material disposal - business or part of a business?

2.4.2. Associated disposal

2.4.2.1. Restrictions - eg receipt of rent

3. Inform HMRC

3.1. Via tax return?

3.2. Need to notify chargeability?

3.3. Or separate reporting requirement?

4. Capital allowances

4.1. Consider claim/disclaim

4.2. Special rules for fixtures

4.3. s. 198 election?

5. Structures and buildings allowances

5.1. Relief at 3% pa on qualifying costs

5.2. Clawback on disposal

5.3. Allowance statement required

6. VAT

6.1. Is this a TOGC (ie. more than a building being sold)?

6.2. Basic rule: exempt - but there standard rated transactions - eg. sale of the freehold in a commercial buiding < 3 yrs old

6.3. Capital goods scheme?

6.4. Opted to tax?