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Partners owning premises and Retirement

A number of GPs own their premises. It is often wise to include in the partnership agreement that when a partner retires or leaves a partnership that they are obliged to sell their share to the partnership/incoming partners.

The GPC guidance The future of GP practice premises  states that 'if a partner wishes to retire but wants to remain the owner of the property, they would have to stay on as a ‘sleeping partner’.

According to the Premises Directions, to be able to continue receiving notional rent, you have to be a contractor.

Otherwise the only option is to stop receiving rent reimbursement from the PCO, become a landlord and rent out the property to the remaining partners who would have to apply for lease reimbursements'.  (p22 in linked document)

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