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Chapter BIM54065

Document Cited authorities 1 Cited in Related
Vincent
Published date22 November 2013
Record NumberBIM54065

A principal dentist usually has a practice, consisting of a list of patients, premises, equipment and staff. That practice, in which they exercise their professional skill, is the source of the profits to be taxed as trading income.

As the person receiving or entitled to the income from that source, the dentist is the person chargeable (S8 Income Tax (Trading and Other Income) Act 2005). It follows that, if there is a change in the person carrying on that practice, there will be a succession and the rules on cessation of a trade will apply.

The position of a dentist with a practice in a particular area is to be distinguished from that of a professional person who can exercise their professional skills anywhere in the country; see Seldon v Croom-Johnston [1932] 16TC740, Rex v City of London Commissioners, ex parte Gibbs [1942] 24TC221 at page 239, and Sargent v Barnes [1978] 52TC335. Accordingly, if a principal dentist leaves a practice in one location and moves to a practice in another location, the income from both practices must be computed on cessation and commencement lines. The argument that a principal dentist carries on one continuous profession wherever they go should not be accepted where they have operated in established practices (see BIM80625).

The position of an associate dentist may be different. Associates may have no patients of their own, no premises or staff and even no equipment. They can make their services available to one or more principal dentists on terms which usually preclude them from retaining any of the patients as their own at the end...

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