Why is my notional rent reimbursement abated?

Improvement Grant

If a practice has received capital from the NHS for the cost of refurbishing or extending their GP Surgery, then this amount is liable to be abated from future notional rent payments. The length of the abatement period is dependent on the amount ‘borrowed’ from the NHS;

• Works costing up to £100,000 = 5-year abatement period
• Works between £100,000 and £25,000 = 10-year abatement period
• Works costing more than £250,000 = 15-year abatement period

The level of abatement is determined by the increase in current market rental value (notional rent) following the improvements minus any financial contribution by the practice.

Renting to alternative healthcare providers

If a practice receives a rent for any part of the building for which they are also receiving reimbursement from the NHS the rent for that space should be abated to prevent double payment. The abatement will depend on the amount of time the space is rented out/used by an alternative healthcare provider. (I.e. If 1 room is used by a physio 1 day a week then the rent should be abated by 20%)

Rent abatements will also apply when a practice leases out part of its premises to a third party (i.e. Pharmacy)

Under-utilising space

If a practice has areas/rooms of their surgery which are not deemed to be for GMS or PMS use, then they may not receive reimbursed for that space. All space within a GP Practice requires approval from the NHS for notional rent reimbursement. It is essential practices seek professional advice to ensure they are utilising their surgery to its full potential and receiving the maximum level of reimbursement available.

Should you require any additional advice on abatements of your notional rent or anything else please contact Will Ellis on 0114 4420098 who would be happy to help.