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GP premises and succession planning
Succession and property ownership planning are critical for the long-term health of GP practices. A webinar hosted in partnership with RCGP, featuring experts from BHP, Chartered Accountants, offered practical guidance for General Practitioners. Here are five key learnings from the session to help practices navigate partner transitions with confidence.
Read time: 4 mins Added: 20/10/25
Five key learnings
1. Start succession planning early
Early planning is essential to avoid disruption and ensure a smooth transition for both incoming and outgoing partners.
2. Understand the financial impact of partner changes
Retiring and incoming partners affect cash flow, tax, and capital structure.
3. Property ownership changes need careful coordination
Legal, tax and valuation issues must be addressed early to avoid costly mistakes.
4. Engage with professional advisors from the outset
Involve accountants, solicitors and banks early in the process.
5. Flexible financing can ease partner buy-ins
Tailored loan structures can reduce financial pressure on new partners.
Succession planning: Start early
Succession planning should begin well before a partner retires. Jenny Hurst from BHP stressed the importance of early preparation.
Key steps:
- Keep your partnership agreement up to date – make sure it includes clear terms for partner entry and exit.
- Identify potential successor partners early – consider salaried GPs, locums or external recruits.
- Set a realistic and structured timeline for transitions.
Early planning helps to manage expectations around capital and current account withdrawals for outgoing partners to maintain financial stability. It also reduces the risk of conflict or unplanned partner exits.
Managing partner changes
Partner changes affect both the practice’s finances and its operational structure.
For retiring partners:
- They are entitled to their capital and current account balances. The capital account includes their share of surgery premises, furniture and equipment.
- Tax liabilities often fall due after retirement. If the practice has historically paid partners’ tax from their current accounts, agree who will pay the tax.
- NHS pension contributions may be delayed due to the time lag between finalisation of accounts and processing of pension certificates by PCSE. Retain funds to cover this.
For incoming partners:
- They should contribute to working capital, furniture and equipment in their current and capital accounts.
- Contributions may be built up over time through reduced monthly drawings.
- Loan options are available for upfront payments, with tax relief on interest, allowing for build up over a longer period, if required.
New partners should receive clear financial projections before joining a practice. This enables them to compare partnership earnings and cashflow with their current position.
Property ownership: Plan and document carefully
Changing property ownership is complex and should be handled with care.
Key actions:
- Appoint a specialist GP valuer (speak to your finance provider before instructing).
- Agree who will pay fees for valuation, legal and loan arrangements.
- Update legal documents promptly to reflect ownership changes.
Tax considerations:
- Capital Gains Tax (CGT) may be payable by partners selling their share of the premises.
- Business Asset Disposal Relief (BADR) may reduce the rate of CGT if a retiring partner sells on, or within three years of retirement. The rate is 14% from 6 April 2025, increasing to 18% from 6 April 2026i.
- Sale and leaseback, where the property is sold and leased back to the practice, would generally result in BADR not being available to continuing partners and therefore a higher rate of CGT being payable. For higher rate tax payers this is 24% from 6 April 2025i.
- Always check for Stamp Duty Land Tax (SDLT) exemptions when transferring property between partners.
Engage early with advisors
Professional advice is essential for a smooth transition.
Your accountant can:
- Calculate buy-in and buy-out figures.
- Provide advice on tax and funding structures.
- Help assess the financial impact of partner changes.
Your solicitor should:
- Update partnership agreements and legal charges.
- Assist with lease changes where property ownership differs partnership structure.
Your bank will:
- Review existing and new loan facilities.
- Need a bank instructed valuation for any new funding.
- Update security arrangements and mandates.
Even if no new borrowing is needed, inform your bank of any partner changes.
Financing options to support succession
Lloyds offers several funding solutions to support GP practices.
Available options:
- Up to 100% property value loans to reduce or eliminate buy-in costs.
- Partially amortising loans with 5 or 10-year commitments and 25-year profiles.
- Split loan structures combining interest-only and capital repayment elements.
These options help:
- Lower monthly repayments.
- Reduce the equity amount buy-in for future partners.
- Make buy-ins more attractive and affordable.
Conclusion
Succession planning and property ownership play a crucial role in the future of GP practices. GPs looking to navigate the complexities need to adopt a strategic approach. They must balance financial, legal and operational factors. Planning early is essential. Clear communication and professional advice are also important. These steps help ensure a stable and sustainable future.
For further details or assistance, GP practices are encouraged to reach out to their Lloyds Relationship Manager.
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