Responding to the 2020 Budget presented by the Chancellor of the Exchequer today, Andrew Pow, executive board member of the Association of Independent Specialist Medical Accountants (AISMA) and partner, Mazars UK, said: “We welcome the news that the annual allowance threshold for the NHS Pension Scheme will be increased by £90,000 for the 2020/21 tax year. This means that any doctors earning up to £200,000 will now get the full annual allowance of £40,000.
“While this will not remove higher earners with growth above £40,000 from having a tax charge, it will mean most doctors will not have their annual allowance tapered down. It will be important that NHS pension records are kept up to date so that higher earning doctors can assess their tax position.
“The Chancellor also announced that entrepreneurs’ relief on business capital gains will be reduced to £1 million from £10 million. This keeps the allowance in place for most GPs selling shares in their premises.
“The earlier announcement today of a reduction in interest rates by 0.5% will benefit doctors who have variable rate loans on their surgery borrowing.”