I retired from general medical practice on 30th June 2002. I owned the surgery since 1968 and the purchase price was £8,000.  Today's valuation is approximately £250,000. It is no longer my business premises but now leased to other doctors since my retirement. I am thinking of giving this as a gift to my adult son. I understand that it will be potentially exempt transfer for inheritance tax purposes (7 year rule). Do I have to pay stamp duty on transfer as there is no cash transaction and will I have to pay any capital gains tax or indeed any other tax?

Arthur Weller replies:

If you look at www.hmrc.gov.uk/manuals/cgmanual/CG63995.htm you can see that since a long time has passed since you retired and stopped using the surgery for your own work, its disposal will not qualify for entrepreneurs' relief. Therefore there will be a lot of capital gains tax to pay on the gift to your son, most or all of it at 28%. You are deemed to transfer it to him at present market value, i.e. £250,000, even though he pays you nothing (see www.hmrc.gov.uk/manuals/cgmanual/CG14530.htm). But since it is a gift for no consideration, there is no stamp duty land tax (SDLT) for him to pay (SDLT is only ever paid by the purchaser, not by the seller).