5 November 2026

Most doctors, dentists and clinic owners spend years building a practice and almost no time planning how to leave it. Then a buyer comes along, and the offer looks good, and the questions start. Is the price before tax or after? Does the goodwill count? Will the sale land you in a higher tax band? Well, this guide covers the money side of selling a private medical practice for the 2026/27 tax year. Let’s get into it! 5 Steps to Sell Private Medical Practice Planning is essential if you want to sell your private medical practice. Because planning ahead means you won’t make costly mistakes during the sale. Here is a practical look at how to sell a private medical practice. Corporate Clean-up and Valuation Before you sell private medical practice, you need to get the business ready for a buyer. What this means is that you must review accounts, contracts, staff arrangements, leases, equipment, and any outstanding debts. Also make sure that patient income, card payments, bank statements, payroll, and supplier invoices reconcile. Remember that buyers look closely at your adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation). This is also the time to separate your own clinical reputation from the value of the business. If patients only visit the clinic to see you, the business loses value the day you leave. Choose Between an Asset or Share Sale The way you sell private medical practice assets will depend on how your business is structured. Most private UK practices are limited companies. So you have two main ways to sell. Sale Type What You Are Selling Primary Tax Impact Share Sale Entire limited company (shares) Seller pays Capital Gains Tax directly on share proceeds. Asset Sale Specific assets, patient lists, equipment Company pays Corporation Tax first; seller pays personal tax to extract cash. A share sale is normally easier for the seller, whereas an asset sale gives the buyer more control over what they are taking over. It is strongly recommended that you obtain proper advice before you agree to the structure of the deal. Map Out Capital Gains Tax and BADR Rules Timing your exit matters significantly under active UK tax legislation when you plan to sell a private medical practice. The annual exempt amount is held at £3,000 for individuals for the 2026/27 tax year, Anything over this threshold will be taxed at the standard CGT rates depending on your income band: 18% for gains that fall within the basic rate income tax band 24% for higher or additional rate taxpayers Business Asset Disposal Relief (BADR) can substantially lower this tax bill. For disposals made in the 2026/27 tax year, the BADR tax rate is 18%. To qualify for the 18% BADR rate when you sell private medical practice, you must hold at least 5% of the shares and voting rights. Additionally, you are required to serve as an active employee or director of the company. You must meet these conditions for at least two continuous years right up to the sale date. Manage the NHS Pension and Insurance Traps Do not overlook your NHS Pension position when you sell private medical practice interests. If your private practice handles any NHS contract work, your NHS Pension scheme requirements need careful attention Giving up your contract or changing company structures can impact your superannuation. These actions also impact your ultimate pension valuation. You also have to think about malpractice tail coverage. When you stop practising or hand over the clinic, you must buy insurance. This coverage is necessary to protect against future clinical claims. The insurance fee can be high. Therefore, make sure to budget for it early in your financial planning. Prepare for Due Diligence and Complete the Sale The final phase when you sell a private medical practice involves rigorous legal verification and signing of contracts. When a buyer is serious, they will do due diligence. Your electronic medical records (EMR) protocols will be audited by the buyer’s legal team to ensure strict data compliance. They will look at your employment contracts and your Care Quality Commission (CQC) inspection histories. You need to run a proper consultation process with your team before you close the deal to avoid legal disputes. Do I Pay VAT When I Sell Private Medical Practice? Most medical care services are exempt from VAT. When selling the business as a going concern (TOGC), the sale itself falls outside the scope of VAT if specific HMRC conditions are met. This means you will not need to add 20% VAT onto the sale price. How Long Does It Take To Sell a Private Medical Practice? There is no fixed timetable. The process depends on finding a suitable buyer, agreeing on the valuation, completing due diligence and resolving legal, tax and regulatory matters. However, if you start preparing your accounts and documents early, you can avoid unnecessary delays. What Tax Do I Pay When I Sell a Private Medical Practice? The tax depends on the ownership structure and what you sell. Individuals may pay Capital Gains Tax on qualifying gains, while a company selling assets may pay Corporation Tax. Fortunately, Business Asset Disposal Relief may reduce this CGT rate to 18% for qualifying gains instead of the higher 24%. How CruseBurke Can Help At CruseBurke, we specialise in guiding healthcare professionals through complex business transitions. Our services include bookkeeping, year-end accounts, Self Assessment tax returns and tax planning where appropriate. We also offer NHS Pension Scheme reviews to help eligible doctors understand their pension position. The Bottom Line To sell private medical practice assets or shares successfully, you need clean accounts and a tax plan that fits the 2026/27 rules. The right structure can affect Capital Gains Tax, Corporation Tax, VAT, and how smoothly the sale goes through. Get advice early and make sure that the financial side supports the price you are asking for. Disclaimer: All the information provided in this article on “How to Sell a Private Medical Practice: Financial and Tax Considerations“, including