Where a medical practice exists in a partnership, the practice is regarded as a single source for tax purposes. In this instance a Partnership Tax Return should be filed and contain all the information required to calculate the taxable profits arising from the firm in any accounting period. This includes claims, which you must take into account when calculating taxable profits.
Individual partners cannot make supplementary claims, whether for expenses or capital allowances, in their own tax return. This is because expenditure incurred by a partner only qualifies for relief if it is made ‘wholly and exclusively’ for the purposes of the partnership business. And the only legal basis where relief can be given for any such expenditure is a deduction in the calculation of the profits of the partnership business.
The only legal basis for giving relief for expenditure that qualifies for capital allowances are as a deduction in the calculation of the profits of the partnership business. Although this does not mean that any legitimate expenditure incurred by a partner can only be relieved if it is formally included on the partnership accounts.