commercial property sell or keep

kieranowens

i have a shop with premises above i am self employed and run the shop down stairs but i want to close it down i can sell the shop and doing something else tomorrow i can get 100k for it maybe slightly more.
ive got 2 options remorgage or sell no money is owed on shop

i paid 20k for it in 1988 with my bussiness parner but in 2001 it was transfered into my name only

if i sell for 100k

1:what would be the tax implecations on it? ie capital gains tax

i am currenty 50k in dept and the repayments r crippling me
i can remorgage for 50k which i have applied for but 23k is to pay of existing loan with same company the loan is at 3% over base rate aprox 500 a month
leaves me with 27k if i keep the building i need to spend 10k on it to get it upto scratch leaves me with 17 to start new venture i could safly say i could rent 150 per week which would pay the loan but would still leave me stuggleing with rest of dept any advice please

lynzpower

Sounds like a no brainer to me keiran, Id sell clear your debts. Whatever the Capital gains tax is ( ireally dont know much about this, others will) , its pretty unlikely it would be 30k, leaving you enough to pay off your debt, settle the mortgage and have some left over I expect.

BobProperty

This is an area where you need professional advice regarding what you do with the proceeds of the sale and putting some of it into another business. It may be possible to "roll-over" some of the money into the new venture and not pay tax on it (or maybe not yet). See an accountant.

kieranowens

thanks for reply greatly apprecated