Selling Goodwill & Stock at Valuation

If you are trading as a sole trader or in a partnership, then you are likely to sell the goodwill of the pharmacy and stock at valuation (generally referred to as an Asset Sale). As long as you have owned the business for at least two years, you are likely to obtain Business Asset Disposal Relief (BADR) and pay capital gains tax from April 2025 at 14% of the net gains (conditions apply). 

The pharmacy sales process can be quicker and cheaper, in terms of time and costs involved with the legal and financial due diligence process. 

The pharmacy buyer will need to obtain a transfer of ownership of NHS contract. This can take anywhere between 3 to 6 months, depending on which area team at PSCE (Primary Care Support England) you are dealing with. It is therefore important for the seller and the buyer to work together to complete the transfer of ownership forms accurately and submit them as soon as the Heads of Terms are agreed. It is also important for the buyer to keep chasing the PSCE to ascertain the progress.