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Dental difficulties

27 March 2012
Issue: 4347 / Categories: Forum & Feedback
A sole practitioner dentist operated his practice from premises in two towns about ten miles apart. One practice has been sold, although the premises have been retained, but HMRC have refused a claim to entrepreneurs’ relief

My client is a sole practitioner dentist practising as an orthodontist (teeth straightening). For many years he operated two orthodontist practices in different towns some ten miles apart.

Only one set of accounts for the two practices has ever been prepared and there is only one bank account. Employed dental nurses have as required worked at both practices.

On 31 March 2010 (the date of the sale contract) the goodwill of one of the practices together with some equipment and materials was sold.

The purchaser did not want the premises. What he was buying was a valuable NHS contract with the local Primary Care Trust to provide orthodontic services in the town.

As part of the sale agreement my client had to close down the premises and is not allowed to practise any form of dentistry within five miles of the practice for a period...

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