Cookie policy notice

By continuing to use this site you agree to our cookies policy below:
Since 26 May 2011, the law now states that cookies on websites can ony be used with your specific consent. Cookies allow us to ensure that you enjoy the best browsing experience.

This site is intended for health professionals only

At the heart of general practice since 1960

Tax plans could hit GPs' pension rise

GPs could find their predicted pension increase from the new contract swallowed by a 60 per cent tax levy, medical accountants are warning.

The Treasury has proposed the tax on pension funds in excess of £1.4 million.

Although GPs do not accrue a fund, accountants said they could still be hit because the Inland Revenue would calculate how much GPs would need to have saved in a private fund to earn their pension.

Actuaries have predicted a £1.4 million fund will currently buy a £53,000 pension.

David Clough, chair of the Association of Independent Specialist Medical Accountants, said the cap 'could become another stealth tax'.

He said: 'GPs' pensions are anticipated to go up by 50 per cent in the next three years but even if it's only 30 per cent it could get close to the cap.'

Dr Simon Fradd, chair of the BMA's superannuation committee, said only a few high-earning GPs may be

affected and even they could avoid the tax.

'Because the employer's contribution is paid through the global sum, you just keep it and stop contributing,' he said.

Rate this article 

Click to rate

  • 1 star out of 5
  • 2 stars out of 5
  • 3 stars out of 5
  • 4 stars out of 5
  • 5 stars out of 5

0 out of 5 stars

Have your say