If you are currently trading as a sole trader or as a partnership, then you are likely to sell the goodwill of the pharmacy and stocks at valuation. Provided you have owned the business for at least one year, you are likely to obtain full entrepreneur’s relief and you will pay capital gains tax at 10% on the net gains.
If you are currently trading through a Limited company structure, and if you sell only the goodwill and stock, then your overall capital gains tax will be about 29% of the gains (based on 2018/19 tax rates – 19% will be paid by the company and a further 10% by you personally assuming you extract the cash from the company immediately after sale). This is clearly a very expensive option but there is an alternative (see below).
The buyer will need to obtain a transfer of NHS contract which is currently taking between 4 to 6 months depending on which area team at PCSE you are dealing with.
If the seller is the company, its shareholders will effectively pay a total tax of 29% or more.