No change to GP pension taxation, MPs rule

12th February 2021 by NASGP

No change to GP pension taxation, MPs rule

The Government has approved ‘deferred choice underpin’ but refused to change the rules on the tax-free pension allowance, Pulse reports. 

The BMA had called on Government to give more GPs access to a tax-free pensions allowance. But last week the consultation outcome stated outright that the rules would remain as they are. 

Authors at the Department of Health and Social Care wrote: “The department does not intend to proceed with proposals to introduce pension scheme flexibility for senior clinicians.”

On a related subject, last week the Treasury announced that it would introduce a remedy for age discrimination in NHS pensions – another reform the BMA has campaigned for.

The remedy, a deferred choice underpin (DCU), corrects age discrimination in the 2015 scheme. 

Under DCU, a BMA journalist explains, at the point of retirement members can now choose whether the previous ‘legacy’ or reformed 2015 scheme is applied to their pension for 1 April 2015 and 31 March 2022 contributions. 

Kirsty McGaun, an independent specialist medical financial adviser at Legal & Medical, has summarised sessional GPs’ action points following the publication of the consultation outcome. To get the full details read the article on NASGP.org.uk now.

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