Pensions - Articles - Treasury announcement fails to address broken tax system


In response to the Government’s announcement today of a new “public consultation” detailing how it will mitigate the impact of tax rules of members in the National Health Service (NHS) Pension Scheme, Barnett Waddingham has issued the following response.

 Nilesh Shah, Associate, Executive Pensions, said: “Whilst this may be welcome news for a huge number of affected NHS scheme members, the Treasury has so far failed to properly address the wider impact of an imperfect tax structure. There are hints in the latest announcement that these wider issues will in fact be addressed at some point in the future but, for now, we are presented with a stop-gap solution that adds complexity to an already-complicated pensions tax regime.”

 “Whilst the precise details will be in the promised future consultation, this announcement suggests that affected NHS Scheme members will have to make any decision to reduce pension accrual at the start of each year. This could still leave individuals limited by the option they select at the beginning of the year and may yet result in additional hours being turned down as individuals approach tax limits.

 “We request that any changes to the pension taxation system must apply identically to everyone in the same situation, regardless of their employer. It should be available to everyone—not just doctors!

 “We also advise that every affected member engages directly and actively with consultants that have extensive knowledge of the challenges facing senior NHS staff. The complex issues at hand require careful planning and consideration – particularly from a taxation point of view.”
  

Back to Index


Similar News to this Story

PPF marks 20 years of protection in its Annual Report
The Pension Protection Fund (PPF) has published its 2024/25 Annual Report and Accounts, marking its 20th anniversary with a year of strong financial p
DC pensions continue to back Net Zero despite ESG backlash
Barnett Waddingham’s latest DC Sustainability Report finds a 34% increase in allocations to funds with a climate target in the growth stage since orig
Chancellors focus on guided retirement for pensions savers
Ahead of the Mansion House speech to be delivered by UK Chancellor Rachel Reeves on the evening of 15 July, Glyn Bradley, Chair of Pensions Board at t

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.