The majority win for a second term in power for the Conservatives surprised many voters – and indeed the pollsters whose predictions fell wide of the mark.

With the Coalition now dissolved, what does a Tory victory mean for the personal finances of the successful Orthopaedic Surgeon?

Simon Bruce, managing director of specialist financial planners Cavendish Medical, highlights the key issues to consider.

Should I still be contributing to my NHS pension?

Surgeons currently enjoying 45 per cent tax relief on their pensions contributions have been spared the introduction of a flat rate of tax relief of around 30 per cent, pledged by both Labour and the Liberal Democrats.

However, the Conservatives’ manifesto declared that those earning over £150,000 will be limited as to how much they can contribute to their pensions. For every £1 of earnings over £150,000, the annual allowance would reduce by 50p so that those earning £210,000 and above would have an allowance of just £10,000 rather than the current £40,000. Expect this to be announced at the next Budget.

Be wary of any NHS pay rises received through increments, new management positions, CEA awards or by any other means. Immediate tax charges of up to 50 per cent can be avoided with careful planning.

The pre-Election proposal to cut the Lifetime Allowance (LTA) to £1millon from April 2016 will now go ahead. New HMRC pension protections will be introduced so be sure to confirm which applies to you.

If you have not already engaged an adviser to confirm your current position and pension protection options then you should not delay. There are very few circumstances now where a Consultant Orthopaedic Surgeon can avoid an LTA reduction to pension savings, particularly if you already have a SIPP or personal pension.

Bear in mind that the NHS pension is still very valuable with guaranteed index linked benefits in retirement and provision for spouses and dependents. You may still receive a higher pension after LTA charges than if you opt out. The “new” consultant contract (2003) has staged incremental increases to pensionable pay that apply to your pension after 12 months. If you opt out you will not receive this benefit.

Is this the end of pension savings?

No, you should be looking to maximise your partner’s (children and grandchildren’s) allowances where available. Even for those with no taxable earnings, tax relief is available on contributions up to £3,600 every year. More substantial savings can be made for those who operate private practice as a partnership or limited company. Pension contributions have a beneficial effect in reducing corporation tax and higher and additional income tax liabilities for the individual.

Can I really pass my private pension onto my children?

Yes, as of April 2015 you can leave your entire personal pension to your children or any other beneficiary/ies you choose. With a new Conservative government this legislation looks set to remain in force. Prior to April 2015 punitive taxes were applied to pension funds on death after age 75 and any residual fund could fall back into your partner’s estate leaving an increased inheritance (IHT) tax bill.

This is a step change in the way we think about pension savings accumulated to date. You can now leave it in place for future generations to benefit from completely free from IHT.

Mansion tax

The contentious ‘mansion tax’ for properties worth over £2million is no longer on the cards, for five years at least. Is this the end of reforms to property taxation following the recent stamp duty changes?

Inheritance tax and “the family home”

The new government has pledged to introduce a new Family Home Allowance to increase the IHT threshold for couples where a family home is included.

From April 2017, married couples and civil partners will enjoy a new £175,000 per person transferable allowance when their main residence is passed down to children or grandchildren on death. This would mean that combined with the existing £325,000 nil-rate band, parents would be able to pass on property worth up to £1million free of IHT.

Income tax and the personal allowance

The threshold at which the 40 per cent rate of income tax applies will be increased from its current £42,385 to £50,000. Further increases to the £10,600 annual tax-free personal allowance can be expected to increase this to circa £13,000. No set timeframe has been given.

What other important rates and reliefs are under scrutiny?

While the Conservatives pledged to eliminate the current budget deficit by 2017/18 they also promised to freeze Income Tax, VAT and National Insurance rates. So what other measures will be taken to meet fiscal targets?

If tax is not going to be raised, the Chancellor will need to taper less high-profile but costly initiatives. A restriction on the lifetime limit for entrepreneurs’ relief has been suggested. Under certain circumstances this legislation allows Surgeons to pay a reduced rate of capital gains tax on the sale or liquidation of their private practice. A further consideration is a restriction on capital gains tax relief on the sale of primary residences.

As always when political tinkering is imminent, the best course of action is to take control of your own financial destiny, ensuring your long-term plan is achievable, steadfast and fit for purpose.