Capital gains on selling business property?

[tight fart]

I'm contemplating selling the industrial building I purchased freehold in 1992, I ran my business there till 2012.
Since then It's been let to a tenant who's made enquiries about buying it.
My concern is the amount of capital gains tax I'll have to pay, are business premises dealt with in exactly the same way
as a second home? A few years back I heard mentioned a relief for people retiring (I may have dreamt it)
The unit has gone up 5-fold since I've owned it.
(It's in my sole name) I'm probably looking at a £40k tax bill should I sell.
Are there any LEGAL tax efficient ways to sell?

[Eric Mc]

There is no specific Capital Gains Tax relief for retiring anymore. Instead, people selling business assets get "Business Aset Relief" which is effectively applying a 10% Capital Gains Tax charge against the gain on the disposal of the asset.

However, you have not been using the asset for a "business" as such - it appears it was being let by you as a commercial property to some other business. The sale of commercial properties are subject to "normal" Capital Gains Tax i.e. Basic Rate 10% and Higher Rate at 20%. How much of the gain falls into the 10% and 20% bands depends on your other income in the tax year in which the asset is disposed of.

The tax rates for the sale of Residential Properties are higher i.e. 18% and 28%.

[tight fart]

Thanks Eric, I wasn’t aware of the lower bands.

[Eric Mc]

If your normal income (salary, profits from business, pension etc) uses up most or all of your basic rate band, then most, if not all, of the gain will be taxed at the higher Capital Gains Tax rate.