BIM54010 - Doctors and dentists: receipts

Medical practitioners receive, in addition to a capitation payment (or, in a few cases, a fixed annual payment), certain other allowances, all of which should be included in the computation of liability under Case II. These allowances include, among others, a supervision fee for the training of an assistant under an approved arrangement and an inducement payment, that is, an addition to the capitation payment etc in areas which are considered to be sparsely populated or otherwise unattractive to medical practitioners.

Medical practitioners also receive reimbursement of rent and general rates on practice accommodation. Where the doctor owns the premises, payment is based on a notional commercial rent. Where the premises are used partly for professional and partly for private purposes, a rental allowance is payable based on the District Valuer's apportionment of the gross rateable value as between professional and private accommodation.

From 1980, doctors contracted to the National Health Service may sell certain surgery premises to the General Practitioners Finance Corporation and lease them back at a rent based on the cost of the premises. This rent may exceed a commercial rent, in which event the transaction would fall within the scope of ICTA88/S779 ( BIM61300+). Since, however, rents paid are substantially reimbursed and such reimbursements are treated as practice receipts, any rent disallowed under ICTA88/S779 would in effect be doubly taxed unless some adjustments were made. In order to avoid the need for such adjustments, ICTA88/S779 should not be invoked in such cases.