Doctors’ surgery

I act for partnerships of GP doctors who own freehold premises. From time to time when there are changes in the partners there are also changes in the property shares in that the new doctors coming in acquire a share in the practice premises and the doctors going out receive the money for the sale of their share.

Any legal costs associated with the transfers are added back in the income tax computation but usually with each transfer an updated valuation is obtained.

My query concerns the costs of obtaining the valuation and whether they are allowable for income tax purposes or have to be treated as part of the capital expenditure. The costs are usually picked up by the practice as a whole rather than the individual partners involved in the transaction.

I would be grateful for advice from readers.

Query 17 568 – Medico

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