Doctors could claw back £11m in LTA charges
Several hundred doctors could collectively save £11m if they apply for lifetime allowance protection.
A Freedom of Information request submitted by Quilter found 413 members of the NHS Pension Scheme who have retired and paid lifetime allowance tax charges could have benefited if they applied for protections.
As the LTA tax charge is 25 per cent, these members could collectively have saved £11,094,979.
But as Quilter pointed out, these doctors are able to apply for individual protection retrospectively.
It has now raised this issue directly with the NHS Business Services Authority, which is going to contact the impacted members and alert them to their options.
Graham Crossley, NHS pension specialist at Quilter, said: “This Freedom of Information data illustrates how an extremely complicated pension taxation system in the UK can cause significant numbers of doctors to fall through the cracks and ultimately pay much more in pension tax than needed.
Source: FT Adviser article
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