Pharmacy Asset Sales
If you are trading as a sole trader or in a partnership, then you are likely to sell the goodwill of the pharmacy and stock at valuation (generally referred to as an Asset Sale). As long as you have owned the business for at least two years, you are likely to obtain Business Asset Disposal Relief (BADR), or what used to be entrepreneur’s relief, and pay capital gains tax at 10% of the net gains (under current tax rules / conditions and limits apply).
Advantages of a Pharmacy Asset Sale
The pharmacy sales process can be quicker and cheaper, in terms of time and costs involved with the legal and financial due diligence process.
Disadvantages of a Pharmacy Asset Sale
The pharmacy buyer will need to obtain a transfer of ownership of NHS contract. This can take anywhere between 3 to 6 months, depending on which area team at PSCE (Primary Care Support England) you are dealing with. It is therefore important for the seller and the buyer to work together to complete the transfer of ownership forms accurately and submit them as soon as the Heads of Terms are agreed. It is also important for the buyer to keep chasing the PSCE to ascertain the progress.
Thinking of Selling Your Pharmacy?
All information on this site is provided in good faith. Modiplus cannot be held liable for any inaccuracies or loses incurred should you act upon this information. Modiplus is trading name of Modiplus Limited, registered in England – 04489336