“While we await the proposals from the government about how they plan to fix the issues with the tapered annual allowance, it must be remembered that this affects a large number of public sector employees.
“The demand for quality financial advice is only going to grow as a result and advisers need to have the tools at their disposal to make things as efficient and easy as possible.”
In its manifesto the Conservative government promised to review the tapered annual allowance and its effect on the NHS Pension Scheme within the first 30 days of winning the election.
The outcome of this review is expected to be published in the upcoming budget with reforms potentially in place as early as the start of the next tax year.
A Treasury spokesperson told FTAdviser: “We want to make sure that doctors spend as much time as possible treating patients. That’s why we are urgently reviewing the pensions taper to ensure doctors aren’t turning down extra shifts for fear of high tax bills.
“We keep the tax system under constant review and make changes at budget, in the context of the wider public finances.”
amy.austin@ft.com
FTAdviser’s Tax Efficient Investing event returns ahead of what could prove a pivotal year for tax planning.
The OTS has proposed a series of changes to the current regime, changes to property taxes are already on the way, and pensions taxation is back on the agenda. Register here: ftadviser.com/taxmasterclass
What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.
