Derek Keilloh, who had become a family doctor, was struck off the medical register after the Medical Practitioners Tribunal Service (MPTS) found him guilty of dishonest conduct over the death of 26-year-old hotel receptionist Baha Mousa.
Mr Mousa was hooded and severely beaten by British soldiers after his arrest in 2003 with nine other suspected insurgents in Basra. He died 36 hours later.
An inquiry heard he had suffered 93 separate injuries but Dr Keilloh claimed he had only seen dried blood around Mr Mousa's nose when he supervised a failed resuscitation attempt.
British soldier Donald Payne was jailed for a year over the death in 2007, becoming the first member of the British armed forces to be convicted of a war crime.
At the end of a marathon 47-day hearing in Manchester, north-west England, the MPTS said Dr Keilloh's "repeated dishonesty" meant he was no longer fit to work as a doctor.
"The panel determined that erasure is the only appropriate sanction in this case," MPTS chairman Brian Alderman told Dr Keilloh.
"Given the gravity and nature of the extent and context of your dishonesty, it considers that your misconduct is fundamentally incompatible with continued registration."
The tribunal found that Dr Keilloh failed to conduct an examination of Mr Mousa's body or to act to protect the other civilian detainees from mistreatment, and also failed to notify a superior officer of what had happened.
It recognised that Dr Keilloh had done "everything possible" to save Mr Mousa's life in a setting that was "highly charged, chaotic, tense and stressful".
The public inquiry into the case last year found that Mr Mousa died as a result of his injuries and his weakened physical state caused by his mistreatment, the extreme heat and a lack of food and water.
About 46,000 British troops were deployed to Iraq at the height of the conflict following the US-led invasion in 2003, with the vast majority withdrawn in 2009.
A lawyer for Mr Mousa's family, Phil Shiner, says today's ruling could be the first of many.
"There are hundreds of other Iraqi detainees who all complain that they were subjected to terrible ill treatment," he said.
"They would have clearly been showing signs of abuse and not one doctor intervened."