Retirement from a GP partnership isn’t just about deciding when to go — it’s about how you go. Like a relay race, a smooth handover helps keep the whole team moving forward. Whether you’re planning a full retirement, considering a 24-hour retirement to access your pension, or gradually reducing your sessions, forward planning is key.
As ever, your best teammate is a well-drafted Partnership Agreement.
Notice and Process
Most Partnership Agreements require a notice period (often six months) to allow time for financial and operational planning. The agreement should also cover:
- Preparation of leaving accounts
- What happens to capital and premises shares
- Impact on the GMS contract if the practice list is held by the partnership
- Arrangements for drawings and liabilities
- Whether a Deed of Retirement is needed to vary the terms
Capital and Premises Shares
Retirement doesn’t just mean stepping back from clinical work — it usually means a financial exit too.
Your Partnership Agreement should clarify:
- When and how capital is repaid (e.g. on retirement vs instalments). Will bank consent be required if there’s borrowing involved?
- For freehold premises, how will your share be valued and who will buy it?
- For leasehold premises, will you be released from the lease or is someone taking over your obligations?
- Removal of your name from the GMS contract
💡 Premises tip: If your premises are leasehold, ensure the lease allows for a release of liability on retirement — otherwise you may remain jointly liable even after leaving.
What If There’s No Partnership Agreement?
Without a written agreement, you’re in a partnership at will — a far riskier position.
Under the Partnership Act 1890, there’s no such thing as “retirement.” A partner giving notice generally triggers automatic dissolution, which can cause:
- Disruption to the practice
- GMS contract complications
- Financial and operational uncertainty
To manage this, you’ll need to:
- Negotiate terms of departure
- Obtain a valuation of capital and premises
- Draft and sign a Deed of Retirement to formalise the exit and avoid dissolution
- Agree payout and liability release terms
It’s much more complex — and underscores the value of having a robust agreement in place.
24-Hour Retirement
The common route to accessing NHS pension benefits is 24-hour retirement. It involves resigning from the partnership and rejoining after a 24-hour gap.
While common, it carries risks:
- You need agreement from the remaining partners to re-admit you
- Timing issues or documentation gaps could disrupt the GMS contract
- You may lose your equity stake or premises interest if the documents aren’t clear
Best practice: Build 24-hour retirement into the Partnership Agreement — setting out a partner’s right to step away temporarily and return, along with how profit share, drawings and responsibilities are affected during that period.
Partial Retirement
An increasingly popular option is partial retirement, which allows eligible GP partners to draw pension while continuing to work on reduced hours.
Typically, this means reducing sessions by around 10% and maintaining that for at least a year – there is no need to resign, unlike 24-hour retirement. Your Partnership Agreement needs to allow for this option, including a right to reduce to sessions and clarity on how it affects profit share and responsibilities.
Restrictive Covenants
Some Partnership Agreements include post-retirement restrictions, such as not working nearby or recruiting former staff. While often less relevant on full retirement, they may still apply — so it’s worth checking before you make new plans.
Final Thoughts
Retirement from a partnership involves more than just hanging up the stethoscope. The key to a smooth exit lies in forward planning, clear documentation, and open communication.
✅ If you have a Partnership Agreement — review it carefully. Make sure it includes provisions for capital repayment, GMS continuity, and (if needed) 24-hour or partial retirement.
❌ If you don’t — you’ll need to negotiate and formalise the retirement with a Deed of Retirement to avoid unintended dissolution.
Either way, we’re here to help. We regularly support GP practices with partnership exits, deed updates and retirement planning. Whether you’re retiring or managing a partner’s exit, we can help you keep things on track. If you'd like to discuss your options, get in touch.
Contact our Primary Care team on care@porterdodson.co.uk
