Tax due from selling commercial property
Discussion
I purchased a commercial property (ex car main dealer side) in 2013 for £485k, with £15 stamp duty and £8k in fees. I operated by business from the site until I sold the company in December 2021. The new owner of the company has rented the property from me since then at current market value. It has been owned by myself and my wife since to bought it, never owned by the company.
He is now due to move out so I am thinking of selling the site. Current market value will be around £1.4m based on approx £95k p/a rental income (I am led to believe but happy to be guided on this until I meet agents next week), but I'm struggling to get firm ideas of the tax payable as my accountant is away for a week or so. I keep seeing various rates of 10%, 24%, 28% etc.
Expected selling fees to be around £20k so any guidance would be gratefully received so I can help decide whether to spend a bit on the site and re-rent it or sell it.
He is now due to move out so I am thinking of selling the site. Current market value will be around £1.4m based on approx £95k p/a rental income (I am led to believe but happy to be guided on this until I meet agents next week), but I'm struggling to get firm ideas of the tax payable as my accountant is away for a week or so. I keep seeing various rates of 10%, 24%, 28% etc.
Expected selling fees to be around £20k so any guidance would be gratefully received so I can help decide whether to spend a bit on the site and re-rent it or sell it.
I work in a specialist Roadside & Automotive team within one of the largest commercial real estate firms and we do a lot in the car dealership sector.
From what you say, it looks like you will be seeking to sell the property with vacant possession. Pricing and potentail buyer pool will depend on a number of factors including the prospects of being able to relet the property and whether it is likley to be bought for continued existing use (car dealership) or alternative use.
There is a fair amount of car dealership stock on the market at the moment, both vacant possession and investment, and demand and pricing vary considerably.
I do not want to tread on your existing agents toes but feel free to DM me if you wiould like a chat.
From what you say, it looks like you will be seeking to sell the property with vacant possession. Pricing and potentail buyer pool will depend on a number of factors including the prospects of being able to relet the property and whether it is likley to be bought for continued existing use (car dealership) or alternative use.
There is a fair amount of car dealership stock on the market at the moment, both vacant possession and investment, and demand and pricing vary considerably.
I do not want to tread on your existing agents toes but feel free to DM me if you wiould like a chat.
Mogul said:
they are 125bps tight on city offices, they will be massively out on looser income. can of ham best bid 6.5%, market not good
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