Pensions 'debacle': Association condemns Chancellor announcement
Chancellor Philip Hammond has ruled out scrapping the tapered annual allowance (AA), despite acknowledging its impact on doctor retention. Responding to Hammond’s update, Dr Kathleen Ferguson, President of the Association said: “The great pension debacle is set to continue as the Chancellor announces that the tapered annual allowance will remain as a Treasury strategy. The tapered allowance, which was planned to place a cap on the tax relief on pension contributions for higher earners, is set to provide £6bn annually to the Treasury pot."
"Many doctors have already found themselves exposed to unexpected additional tax bills, sometimes in excess of the income triggering the charge. Many doctors are reducing their working hours or simply retiring early as two drastic ways of avoiding these tax charges. The Chancellor's announcement offers no hope of stemming this loss of vital workforce to the NHS.”
"Many doctors are reducing their working hours or simply retiring early as two drastic ways of avoiding these tax charges." - Dr Kathleen Ferguson, President of the Association
“This is unlikely to be the final word on what many doctors feel is an unjust penalty. It has been mooted that the tax rules will stay but the NHS Pension scheme may change. There is no detail on this at this time but a close watching brief is being kept.”
You can read more about the Chancellor’s announcement here.