Freehold
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
FREEHOLD
Freehold pub values are based on a combination of the bricks and mortar value and the value of the business, including goodwill. Valuations are calculated by pub valuers and, again, should be supported by verified accounts.
- Typical prices range from £ 250,000–£ 750,000.
You will also need to have sufficient funds to cover:
- stock and glassware;
- stocktaker’s fee;
- licensing costs and associated solicitor’s fee;
- legal fees relating to the purchase of the property;
- structural survey fee;
- working capital;
- training course fees;
- stamp duty (SDLT).
Will VAT be added to the price?
If the seller and purchaser are carrying on the same kind of business, the transaction will be regarded as a going concern, and not be subject to VAT. A pub transferring ownership from a brewery or pub company to an individual may attract VAT. This is because a brewery or pub company carries out a different kind of business to an individual. A transaction between individuals, operating the pub in the same way, is not likely to attract VAT.
It is always worth clarifying whether VAT will be added to the price of a freehold.
Stamp duty land tax on purchase of a freehold
Stamp duty land tax is payable based on the price of the property. Stamp duty land tax rates for transactions on or after 17th March 2005 are as follows:
