Medical help

The clients of our practice fall in to two main categories: sole practitioners such as orthopaedic surgeons or anaesthetists who have a significant NHS salary in excess of £100 000 per annum with private practice incomes which can be in excess of £250 000 per annum; and dental practitioners in partnership with up to five partners.

 Although these are quite different in terms of their modus operandi nevertheless there are common areas of tax planning on which we would be grateful for Taxation readers’ advice.

With regard to the first category sole practitioners are attracted by incorporation of their surgical or anaesthetic practice and it seems that there is no professional reason why they should not do so. Incorporation would enable the principal to gift shares to their spouse and non-minor children enabling dividends to be declared to absorb lower rate tax bands and assist towards...