While AISMA welcomed changes that were made to the annual allowance tapering rules in the March 2020 Budget, many higher earning GPs will still exceed the allowance and face tax charges.
The Treasury has confirmed that no further flexibilities are being proposed to reduce the scope of those being impacted.*
A significant issue remains for GPs in receiving timely and accurate pension information and while improvements have been made, there are gaps remaining in many pension records, making it difficult for GPs to assess their possible tax liabilities.
The current system of estimated scheme pays elections having to be submitted and then corrected several years later is unhelpful for pension scheme members, who may ultimately pay for this through increased administration charges.