High-achieving doctors will soon see the size of their annual allowance – the amount they can pay annually into their pension and still qualify for tax relief – cut from £40,000 down to a possible £10,000.   

From April 2016, the new ‘tapered’ annual allowance will be reduced by £1 for every £2 of income for individuals earning over £150,000 with a maximum reduction of £30,000 for those earning £210,000 or more.  

This means that a doctor earning £150,000 can contribute £40,000 into their pension each year tax-free but those earning £210,000 can only save £10,000 for their future.

This adds an extra layer of complexity to the annual allowance calculations which are already challenging for the busy consultant with several income streams.

Do you know where you stand? Will an increase in your pensionable pay trigger a hefty tax bill? Do you have capacity to increase contributions before the change comes into play or will you fall foul of the reduced lifetime allowance limit? Act now to clarify your position without delay.

Please call one of our advisers on 020 7636 7006.