I agree We use cookies on this website to help us provide the best user experience. By browsing this site you agree to their use - more information is available here.

Barnett Waddingham
0333 11 11 222

NHS Pensions: Treasury announcement fails to address broken tax system

Published by Nilesh Shah on

In response to the Government’s announcement (7 August, 2019) 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.”
Nilesh Shah
Discover more

We provide a bespoke and specialised service designed to meet NHS employees pension requirements. Find out more.

About the author

  • Nilesh Shah

    Nilesh has over 25 years' experience in the pensions industry and is one of our resident expert for dealing with Pension Taxation issues for individuals and their employers.

    View Biography

Updates delivered to you

Stay ahead with our latest comment, expert insight and event details.