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RCSEd response to pension taxation reforms in March 2020 Budget


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12 Mar 2020

Responding to the announcement on pension taxation reforms in this week’s Budget, Professor Michael Griffin OBE, President of The Royal College of Surgeons of Edinburgh said:

“We are glad that the government has listened to the medical professions and raised the threshold income to £200,000. This will remove most doctors from the effect of the taper meaning that the majority will now no longer be in the erroneous position where they are effectively paying to go to work, cutting their hours or turning down important additional work.

As medical and surgical professionals, we take pride in providing the best care for our patients and so are relieved that this anomaly has been addressed.

However, we still have concerns over how suited the annual allowance is to defined benefit schemes such as the NHS.

Many doctors have incomes far below the new threshold income, so will face tax bills if they are exceeding the standard annual allowance of £40,000. This could happen if their pensionable pay rises as a result of assuming a leadership role or being recognised for clinical excellence. Moreover as there is no change to the Lifetime Allowance, many doctors may still take early retirement.

We will continue to monitor this situation closely to see the impact the Chancellor’s changes will have.”


ENDS

About The Royal College of Surgeons of Edinburgh

RCSEd (www.rcsed.ac.uk) was first incorporated in as the Barber Surgeons of Edinburgh in 1505, and is one of the oldest surgical corporations in the world with memberships approaching 25,000 over 100 countries worldwide. The College promotes the highest standards of surgical and dental practice through its examinations, and is also increasingly involved in the provision of surgical training and education, offering the UK’s only Faculty of Surgical Trainers, open to all those with an interest in surgical training regardless of College affiliation. RCSEd’s commercial enterprises offer conferencing and event facilities at The Playfair Building, Symposium Hall and Quincentenary Hall, and runs the Ten Hill Place Hotel.

Find RCSEd on Twitter www.twitter.com/RCSEd and on Facebook www.facebook.com/rcsed

The College is based at Nicolson Street, Edinburgh, EH8 9DW and can be reached on (0)131 527 1600 or mail@rcsed.ac.uk.

For communications and media enquiries contact the Communications Department on (0)131 527 1594 or comms@rcsed.ac.uk


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