Planning for your retirement or selling your practice?

It is essential to plan ahead to minimise your tax liabilities

06 October, 2025 / professional-focus
Jayne Clifford

Whether you are preparing to retire or looking to sell your dental practice, it is essential to plan ahead to minimise your tax liabilities.

With the right strategy, you can reduce exposure to Capital Gains Tax (CGT) and Inheritance Tax (IHT) while ensuring a smooth financial transition.

Capital Gains Tax

Capital Gains Tax (CGT) may apply when you sell a valuable asset such as your dental practice or premises. The tax rates will depend on your income level, but making effective use of your annual exempt amount, which allows you to realise £3,000 of tax-free gains each year, can reduce your overall tax bill.

You may also be able to offset current gains against previous losses you’ve made on other investments or assets, which can further reduce your GCT liability.

Advance planning is key as it can unlock reliefs and exemptions that might not be available if you leave tax planning until the last minute.

Succession planning

Taking a proactive approach to IHT planning can significantly reduce the tax burden on your estate and benefit your beneficiaries, particularly in light of incoming reforms.

Making full use of available reliefs is essential, such as the nil rate band and residence nil rate band. With careful planning, you may be able to remove the value of your dental practice from your estate for IHT purposes. Business assets may qualify for relief, reducing your IHT liability. Meanwhile, trusts can be used to pass on wealth in a controlled, tax-effective way.

Having a valid Will ensures your assets are distributed tax-efficiently and according to your wishes, avoiding intestacy rules, which may trigger unnecessary tax costs.

Consider your exit plan

Every dental practice is different, and so is every exit plan. Whether you are selling, retiring or transferring ownership, we can help you create a tax-efficient strategy tailored to your goals.