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05/12/2025
Woodbridge
Do I need to pay Capital Gains Tax when I sell my commercial property?
You may be liable to pay Capital Gains Tax (CGT) if the value of your commercial property has increased since you acquired it. The tax is based on the profit made - the difference between the sale price and your original purchase price, minus certain allowable costs. The amount of CGT depends on:
- Ownership structure – Individuals, companies, and trusts are taxed differently.
- Income tax band – Individuals may pay 10% or 20% on gains, depending on their income level.
- Use of the property – Reliefs like Business Asset Disposal Relief may apply if the property was used in a trading business.
- Length of ownership – Older properties may require a 1982 base date valuation.
My tenant’s rent is due but he has not paid, what should I do next?
In the first instance you should liaise with your tenant. A telephone call and/or letter may be all that is needed. If not, a landlord needs to decide if the tenant is actually capable of continuing to pay rent for that premises and act accordingly. Landlords have informal options such as agreeing temporary rent reductions, monthly rather than quarterly payments and repayment plans. Alternatively there are a range of formal remedies including distress proceedings (i.e. bailiffs), lease forfeiture and legal proceedings. Active communication, with an awareness of trading conditions, the tenants lease obligations, its genuine financial position and the market for the type of premises in question are all important factors to take into account. This is where a dedicated professional property manager can save the landlord time, aggravation and cost. For further advice please contact one of our Landlord & Tenant team
My landlord has issued a rent review memorandum requiring a large increase in the rent. What should I do next?
It is important to take professional advice in order to establish whether the nature of the lease, the premises and current market evidence justifies an increase in the rent. We regularly advise both landlords and tenants in relation to rent reviews and undertake negotiations to ensure an appropriate rent is agreed. Should it not be possible to reach agreement the matter will usually be referred to an Independent Surveyor or Arbitrator, depending upon the terms of the lease and where we again offer appropriate representation. For further advice please contact one of our Landlord & Tenant team.
I lease commercial premises but am looking to relocate. What are my options for disposing of the lease?
There are a variety of options which may be available including a surrender of the lease, an assignment, subletting or exercising a break clause. The best solution will depend upon your particular objectives, the terms of the lease, the type of property and market conditions. We would always recommend taking advice at the earliest opportunity to assess the options. Whether you are committed to relocating or are simply considering the possibility and would like some preliminary advice, any of our Commercial team would be pleased to assist.
How do you determine the market value of my commercial property?
We determine market value by carrying out a comprehensive inspection of the property and analysing several key factors. These include, but are not exclusive to, the property’s location, size, condition, permitted planning use, lease terms (if tenanted), and recent comparable transactions in the local market. For formal valuations, our RICS Registered Valuers use industry-recognised valuation methodologies and adhere strictly to the RICS Valuation Global Standards (commonly known as the Red Book). This ensures that our valuations are accurate, transparent, and compliant with the highest professional standards.