In a letter sent by the NHS Business Services Authority to dentists last month, it was announced that the date used to work out the pension growth for annual allowance tax calculations will be changed from April 1 to April 6 this year. The effect of moving the date by just a few days will ensure that the annual pension growth calculation only considers growth in pension benefits above inflation. This should allay widely publicised fears that 2022/23 annual allowance figures would be severely distorted by rising inflation and drive senior clinicians into retirement in order to avoid the tax charge.
A consultation on this issue closed at the end of January and the full outcome is awaited with interest. As always the devil may well be in the detail!
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