Last reviewed: 8 August 2026

Quick summary

  • Keep the property ownership, partnership agreement, commissioner determination and practice accounts as separate documents that cross-reference each other.
  • NHS England policy distinguishes notional rent and rent reimbursement and includes circumstances where abatement can matter. Retain any grant, works and abatement evidence.
  • Do not treat a property-owner's mortgage payment, a practice premises cost and a rent/reimbursement figure as interchangeable.

Part of GP and dentist accounting guides.

Direct answer

A GP premises record needs an ownership map before it needs a tax calculation. Identify each owner, legal title or lease, partner status, property share, practice user, commissioner funding route and any third-party occupier. Then retain the documents that explain how notional rent or rent reimbursement was set, whether it was altered, and how the partnership has reflected the related cash and costs.

NHS England's current premises-policy material refers to notional rent where appropriate and notes circumstances in which reimbursement/notional rent can be affected by grants or public capital. HMRC's partnership guidance separately says commercial rent paid by a partnership to a partner for property used in the trade can be allowable to the extent of use. Neither statement tells a reader how their deed, ownership structure and accounts should be treated. Those documents are the starting evidence for a specialist accountant and solicitor.

Keep a premises file for every financial year. The file should allow someone new to see why the practice received money, what the property owners received or contributed, what costs were incurred by the practice or owners, and how the accounts allocated the result. This is especially important when a new partner buys in, an owner retires, rooms are sublet, premises are improved or NHS funding changes.

The premises evidence map

  • Ownership: title/lease, property company information if relevant, ownership percentages, mortgages or loans, valuations and any buy-in/buy-out papers.
  • Partnership: current deed and premises clauses, partner capital accounts, property-owner/non-owner arrangements, rent or licence documentation and minutes approving material changes.
  • NHS premises funding: current determination or reimbursement notice, valuation support, commissioner correspondence, claims and payment remittances.
  • Grant and abatement: capital grant agreement, works invoices, public-capital evidence, abatement calculation/notice and date range.
  • Running costs: insurance, maintenance, utilities, service charges and repairs, labelled by who incurred and paid each cost.
  • Accounts: practice trial balance, partnership allocation, property income/cost schedules and the reconciliation to bank cash.

Make a one-page map that names the parties and points to the current files. It is useful when changing accountants, reviewing a new partnership offer or preparing for a retirement discussion.

Do not blend three money flows

Practice income and costs: these are the practice's operational figures. Retain commissioner remittances, invoices and bank evidence.

Property-owner finance: mortgage interest/capital, insurance or capital works can have a different legal owner and accounting route. Do not assume a monthly mortgage payment proves the practice's rent expense or the amount reimbursed.

Partner allocation: property-owning and non-property-owning partners can have different interests under the deed and related documents. A partner drawing is not a substitute for the allocation schedule or capital-account record.

Keeping these streams visible avoids an especially common error: treating a notional-rent receipt as though it automatically becomes personal cash in the same pattern as a normal profit share.

At least quarterly, reconcile the commissioner payment or remittance to the practice ledger, then reconcile the premises ledger to the owner/property schedule and the actual bank movements. Record unresolved differences separately: a timing delay, a grant condition, a service-charge dispute or a payment made by an owner rather than the practice are not interchangeable explanations. Retain the reconciliation with the management accounts. It gives incoming partners, advisers and lenders a clearer starting point than a headline rent figure alone for everyone.

Three premises scenarios

  • All partners own the surgery: the file shows title shares, commissioner determination, practice accounts, property finance and the deed. A change in one owner's share is documented rather than hidden in a year-end journal.
  • Only some partners own the premises: the practice records its operational premises position, while the owners retain ownership and finance evidence. The partnership agreement and allocations are kept beside any rent/reimbursement route.
  • Extension funded partly by public capital: grant agreement, project invoices, valuation/commissioner correspondence and any rent abatement sit together. The project is not treated as an ordinary repair simply because money left the practice bank.

Records to gather

  • Title register, lease, valuation, mortgage/loan and ownership-change documents.
  • Partnership deed, capital account schedule, minutes and property-use agreements.
  • NHS England/commissioner notional-rent, reimbursement, grant and abatement correspondence.
  • Practice bank statements, premises invoices, service charges and repairs evidence.
  • Current and prior-year accounts showing the premises entries and allocation schedules.
  • Sublease/licence income and tenant documentation where rooms are used by others.

Common mistakes

Do not treat notional rent as a guaranteed mortgage-cover figure. Do not assume every capital improvement is a routine practice expense. Do not use a personal-property spreadsheet in place of the partnership accounts. And do not change ownership or partner allocation assumptions without preserving the deed, title and professional advice that support the change.

Questions for an accountant, solicitor and surveyor

  • Who owns the premises and what document governs each ownership and use interest?
  • How does the current commissioner determination/reimbursement flow through the practice accounts and partner records?
  • Is there grant or public-capital evidence that affects premises funding or abatement?
  • What entries and schedules are needed for a partner buy-in, retirement or property-share change?
  • Which questions need a medical accountant, property solicitor or specialist surveyor rather than one general answer?

Useful related guides

GP premises mortgage and notional-rent records Buying into a GP partnership GP partnership profit-share changes Speak to an accountant

Key takeaway

Notional rent is not a shortcut to understanding a GP property's accounts. Keep ownership, partnership, commissioner, grant and cash records visible as separate but connected evidence. That is what makes a premises decision reviewable.

Sources checked on 8 August 2026

Frequently asked questions

Is GP notional rent the same as the practice's profit?

No. Keep the commissioner determination, partnership accounts, ownership and premises costs separate. The appropriate accounting and tax treatment depends on the actual arrangements.

What should a property-owning GP partner keep?

Keep ownership documents, partnership deed/lease, rent or reimbursement notices, finance records, grant/abatement evidence, costs and account allocations.