Buying or selling a dental practice can be stressful, however with the right advice and support, you can be guided through this process.
It’s important to use the advice of specialists who know and understand the sector. We have connections with Specialist Dental Solicitors, Bankers, Agents, Brokers and Financial Planners so we can put you in touch with the right people to ensure that the purchase is the right one for you and that the process goes smoothly.
Buying a dental practice
We have many years’ experience in helping individuals and businesses purchase dental practices. We’ll help you with:
- Reviewing the detailed financials of the target practice
- The structure of the deal
- Obtaining funding for the purchase
- Assisting your solicitor with the financial aspects of the purchase agreement
- If you buying a limited company:
- Financial Due Diligence services
- Preparation/Review of Completion Accounts.
Once you have purchased the practice, we can help with all of the compliance side of things that you as business owner will now need to deal with:
- Bookkeeping
- Payroll
- Registering for taxes.
Please use the contact form below to get in touch for a no obligation discussion about how we can help you.
Selling a dental practice
Selling a dental practice can be a long drawn-out process. The tax implications of selling will depend on several different factors.
The main relief that dental practice owners are looking take advantage of is known as Business Asset Disposal Relief (BADR – formally known as Entrepreneurs’ Relief (ER)). This reduces the Capital Gains Tax rate from 20% to 10%. However there are conditions and limits on this relief.
Things that affect the tax on the sale of the business include:
- How is your business structured? Sole trader, partnership or Limited Company?
- What are you selling? Assets or shares?
- How long have you owned the business for? This can affect what rate of Capital Gains Tax.
- Have you made Capital Gains on a business before? Again, this will affect the rate of Capital Gains tax that you pay. For BADR, the 10% rate is limited to your first £1m of qualifying business gains in your lifetime. Therefore, if you have sold a business before you may not be entitled to the 10% rate this time.
- What is the plan for your retirement? If you don’t need all of the money straight away then there could be options minimise tax on the sale even further.
It’s important to plan ahead so even if you do not plan on selling any time soon. It’s important to start planning now. Many of the tax reliefs that are available have conditions whereby certain criteria needs to have been in place for a number of years and so it is important to put things in place before you start the sale process.
Although our main focus is around tax. We are also business advisers and we can help you maximise the value of your practice.
The next step
If you would to discuss the services we can provide for your business in more detail, please contact our specialist Dave McIver, call 01244 505 930 or use our generic email dentists@uhy-chester.com.
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