Pension tax issues for healthcare professionals

Arrangements around the pensions of healthcare professionals can be extremely complex and can lead to excess tax charges for some. Constant changes to the annual allowance since its introduction coupled with lifetime allowance charges and protections are ample reasons why those working in healthcare would be wise to seek professional advice when it comes to their finances – but added to that are issues around property tax employment tax and inheritance tax.

Annual allowance

The annual allowance (AA) also referred to as pension input is the maximum amount of pension savings an individual can make each year with the benefit of tax relief. This includes pension contributions made by the individual their employer or a third party. The NHS pension scheme is a defined benefit scheme and as a consequence the level of contributions made within a fiscal year is...