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

Misuse of scam warning flags unnecessarily delays transfers
Thousands of pension transfers are being held up unnecessarily by providers who are raising flags for transfers that have no real scam risks, accordin
Gen X signals a shift in work life priorities
Twice as many UK workers want a sabbatical than have taken one – with Gen X (44-59) showing the biggest gap between desire and reality. Health and we
Trustees play key role in pension scams crackdown
Trustees play key role in pension scams crackdown as £48,000 lost every day to fraud and lump sum withdrawals rise 60%

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.