How much tax will I pay when I sell my pharmacy?

A gain on selling a pharmacy business or your shares in a pharmacy company is taxed at 18% on the first £1 million where Business Asset Disposal Relief applies, from 6 April 2026. A higher rate taxpayer pays 24% above that. On a £1,200,000 gain, that is about £227,280.

A worked example

The gain: £1,200,000, on a pharmacy that qualifies for the relief, sold by a higher rate taxpayer with their full lifetime limit.
The first £1 million: Taxed at 18%: £180,000.
The annual exempt amount: £3,000 of the rest is tax free.
The remaining £197,000: Taxed at 24%: £47,280.
Total: £227,280.

gov.uk, Business Asset Disposal Relief and capital gains tax rates. Checked 13 October 2026. 2026/27 rules. The Budget on 28 October 2026 can change them.

Tax on selling a business calculator Selling your business

The conditions for the relief

A sole trader or partner must have owned the business for at least two years.
A shareholder must have held at least 5% of the shares and voting rights, and 5% of the profits and assets or of the sale proceeds, been an employee or office holder, and the company must be trading, all for two years.
The claim is made by the first anniversary of the 31 January after the tax year of the sale: 31 January 2029 for a sale in 2026/27.

gov.uk, Business Asset Disposal Relief eligibility and how to claim. Checked 13 October 2026. 2026/27 rules. The Budget on 28 October 2026 can change them.

Business Asset Disposal Relief was 10% until April 2025 and is 18% from April 2026.

Where this fits

We advise on what to do with the proceeds of a pharmacy sale.

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The advisers for this subject

Sunny Bharj

Independent Financial Adviser

Tony Springer

Independent Financial Adviser

Advising through Equity & General Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Check the firm on the FCA register under number 474163.

How much tax will I pay when I sell my pharmacy?

A worked example

The conditions for the relief

Related questions

Where this fits

Sunny Bharj

Tony Springer

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