I own and run a beauty salon and solarium (as a sole trader). My profit is around £12,000 per annum and turnover is around £40,000. If I cease self-employment and gift the business assets (current market value of around £10,000) together with the lease, to my son and daughter, who will register a partnership and run a similar business from the same location and the property lease what are the tax considerations for all parties as a result of this disposal? How are the aforementioned assets taken into the new partnership (how will they look on the balance sheet, etc.) and does goodwill need to be valued and considered?

There could be a capital gain on the transfer of the lease and the goodwill. If this gain is more than the capital gains tax (CGT) annual exemption (currently £11,100) then there will be CGT for you to pay. But due to entrepreneur's relief you should only pay tax at 10%. The goodwill does need to be valued. These assets will be shown on the balance sheet at their current market value.