Selling Commercial Property

A solicitor helps you navigate the legal aspects of the sale and protects your interests throughout. We ensure compliance with the relevant regulations, draft and review the contract, manage the transfer of the title, and handle negotiations and enquiries from the buyer’s solicitor. With our expertise on your side, you can avoid legal pitfalls, resolve any disputes, and keep the transaction efficient and legally sound.

A few things are worth thinking about early. These include setting a competitive but realistic price, understanding current market conditions, and making the property as attractive as possible to buyers. It is important to have the relevant documents in order, such as the title deeds and compliance certificates, and to consider the legal and tax implications, including capital gains tax. Preparing the property well, and adopting an effective marketing strategy, can also help you reach the right buyers and agree favourable terms. We can advise on each of these alongside our conveyancing service.

Capital gains tax on the sale of commercial property is charged at 33%. It applies to the profit, or chargeable gain, made on the disposal, calculated by taking the sale proceeds and deducting the original purchase price, any enhancement expenditure, and other allowable costs. A number of reliefs and exemptions may be available depending on your circumstances. Our team will be happy to discuss the likely position with you, and we would recommend specific tax advice where the figures are significant.

It can, and it is an important point for sellers to check. The sale of a newly developed commercial property, broadly one developed within the previous twenty years, is generally subject to VAT at 13.5%, while the sale of an older property is usually exempt. Where a sale is exempt, a seller who previously reclaimed VAT may face a clawback under the capital goods scheme, which the parties can sometimes avoid by jointly opting to apply VAT to the sale. The rules are detailed, so we advise on the VAT position case by case, working with your accountant or tax adviser where needed.

Your solicitor will confirm exactly what is needed, but a commercial sale typically requires the title deeds, evidence that any development or alterations had planning permission and complied with the building regulations, and the relevant compliance certificates. A Building Energy Rating certificate is also required for most commercial buildings offered for sale, subject to certain exemptions. Where the property is tenanted, the leases and details of the rent and service charges will also be needed. Gathering these early helps the sale proceed without delay.