Doctor retires then returns to partnership

Doctor retires then returns to partnership

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A GP retired at end May 2005. After one month he returned as a part time partner. Is it necessary to have two pages in the partnership tax return for this partner? ie should we make him leave then start again? It will not make any difference to the liability.
Dr Who

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By marcia.bowers
13th Dec 2006 17:33

False retirement
Your client presumably took 30 day retirement for superannuation purposes only so that he could draw his NHS pension. HMRC does not accept this is a genuine retirement (eg for a non 31 March year end this does not trigger use of overlap relief). The GP remains a partner in the practice during his 30 day break, either using holiday leave or having a 0% profit share for this period. He retains his practice capital throughout (athough this may be reduced when he becomes part-time).

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