Transfer of business premises

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

This guidance note provides an overview of the key factors to take into account on the transfer of premises used for business purposes as part of a trade and asset sale. A wide range of potential tax implications need to be considered and the final treatment will depend upon a number of influencing factors such as the value of the property, the nature or use of the property, the capital allowances history and the availability of any reliefs for example. Links to more detailed commentary on these issues are provided below.

For guidance on the tax implications of selling a business whilst retaining the business premises, see the Tax implications of trade and asset sale guidance note.

Capital allowances ― fixtures

Buildings usually contain items which are attached or placed permanently in the building, which are referred to as fixtures in the tax legislation. When the building is sold, such assets are also sold given that they cannot easily be removed. Examples of fixtures include:

•
lifts and escalators
•
heating, lighting and electrical systems
•
alarm systems

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