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Rising inflation impacts annual allowance

Due to rising inflation, many members under NHS pension schemes will now breach annual allowances (AA), meaning that larger AA tax charges will apply. The impact will be felt the most if you have pension benefits which revalue in line with inflation (GDPs with dynamised 1995/2008 NHS pensions or anyone with a 2015 NHS pension).

We have updated our annual allowance advice to include a new section, outlining how recent inflationary changes could impact your pension. It is impossible to accurately forecast any individual dentist's pension but if you use an accountant or financial advisor you may wish to consider sharing this information with them. We have also reached out to the Government to outline possible solutions to the problem and we will keep you updated.