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HMRC internal manual

Business Income Manual

From
HM Revenue & Customs
Updated
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Doctors in group practice

With a view to encouraging the formation of group practices, the local management body occasionally makes interest-free loans to doctors in general practice. This may be done directly or through an intermediary.

The term `group practice’ means that the practice is carried on by several doctors working together in close association, consulting about their patients and doing their surgery work wholly or partly in a common building. A group may or may not be a partnership.

Repayment of the loans is normally effected by means of quarterly deductions from the remuneration payable to individual members of the group. No difficulty is likely to arise provided that proper accounts are prepared. However, where they are not, it should be borne in mind that the amounts shown as received may be net sums after deduction of loan repayments.