Maximise Your Tax Benefits When Buying a Dental Practice - Henry Schein Dental Practice Sales
Maximise Your Tax Benefits When Buying a Dental Practice - Henry Schein Dental Practice Sales
What Are Capital Allowances?
As a UK taxpayer, capital allowances offer a fantastic opportunity to reduce your taxable profits when buying a dental practice. These allowances provide tax relief on your expenditure related to commercial properties, including plant and machinery items within the building's fabric. Often overlooked in the overall purchase price, these items, such as radiators, heating systems, alarms, and more, can be claimed to help you save on taxes.
What Could This Allowance Be Worth?
Capital allowances' value varies based on the type of business use and property. A typical dental practice purchase may claim up to 50% of the purchase price or build cost as an allowance, effectively lowering your income and corporation tax liability. If you've already paid taxes on your investment, you could even be eligible for a refund from HMRC.
How Is This Allowance Used?
Your accountant can utilize up to 18% of your total tax-allowable expenses to reduce your annual income tax bill significantly. For example, if you have £100,000 of allowable expenses and receive an £18,000 tax reduction, you'll save £7,200.
Don't Miss Out - Claim Your Capital Allowances!
Losing out on these tax benefits is a real possibility. If you sell your dental practice without claiming the allowances, you may have to transfer any unused allowances to the new owner as requested by the purchaser. To qualify for capital allowances, you need to own a commercial property used for business purposes, and the property's purchase price must be over £250,000 (property portfolios may also count).
Don't overlook this valuable opportunity! Claim your capital allowances and save on taxes when buying a dental practice with the expert assistance of Henry Schein Dental Practice Sales, formerly MediEstates.
Frequently Asked Questions
Find answers to our most frequently asked questions from our clients.
How long will it take to sell my dental practice?
The length of time can vary depending on the practice type and buyer type. Typically a practice sale completes within 4-10 months. For a more detailed discussion about your own circumstances please contact us.
When is the right time to sell my dental practice?
This very much depends on your lifestyle goals and your timeline for exiting the business. In some transactions, the buyer may ask you to work on for 1-5 years and so it is important to plan ahead and ensure you start the sale process early enough to match your proposed timeline. It’s also vital to think about which type of dental buyer you want to sell the business to, as this may impact upon your planned exit date.
What are the current dental market trends?
Dental practices continue to be appealing purchases for both independent and corporate buyers with the banks and private equity investors keen to lend within the sector. As the market is fluid it is best to reach out to us for a valuation. Each practice is unique and our regional Business Development Managers will be able to advise you on the current market trends that will impact your particular practice and when the best time is to sell.
What do buyers look for in a dental practice purchase?
A dental buyer will want to see growth potential within a dental practice and the available chair-capacity or expansion space to capitalise on this. Stability is really important post sale, so a buyer will benefit from a steady in-flow of patients and a stable clinical and support team. Having an appealing physical environment is also important to attract buyer interest.
What documentation will I have to prepare to sell my dental practice?
The due diligence process is often the biggest time commitment for sellers. We have an in-house due-diligence specialist who will support you through the sale and can provide you with a checklist early on the in the process so you can start to prepare the required documentation.
