We help dentists prepare for a safe and secure retirement
Dentists have been facing large Annual Allowance pension tax charges, partially due to flaws in the way in which this is calculated. We identified that for the tax year 2022/23, if no change was made, some very large tax charges would have arisen.
Following our lobbying; DHSC, and counterparts in Scotland and Northern Ireland changed their approach to calculating pensions, with a view to avoiding this problem arising. This will feed through to calculations for 2022/23 and future tax years. There will be no reduction in any pension benefits.
Without change, dentists’ exposure to Annual Allowance charges in 2022/23 would have increased massively. This is now no longer the case. This change means that many people who would normally expect an Annual Allowance charge, will not see one in 2022/23. One member was given figures for this tax year which show that without the change they would have been liable for a charge of circa £25,000. With the change there is no such liability.