Originally Posted by
Easy Street
If you are already drawing your pension then it won’t. If you are still serving it would double the in-year tax charge levied on you every time a pay increment or promotion added more than £40k to your notional pension pot in one year. When this first became a ‘thing’ a few years ago it only affected gp capts and above (and medics/dentists/lawyers), but it’s already crept down to catch wg cdrs by the threshold not keeping pace with pay. The direction of travel on this looks to be one way so it wouldn’t be a surprise if PA sqn ldrs got caught eventually.
Not sure about that. The tax charge is related to input amounts not tax relief. As we don’t receive tax relief on our pensions I think this affects private sector and SIPPs more. Where it will create an issue is the perceived increase in pensions apartheid between public and private sector, which will leave your average Torygraph reader frothing at the mouth more than usual.