Changes to tax rules April 06
From 6 April 2006 (A-Day), HM Revenue and Customs (HMRC) changed the way it limits tax-free pension savings in ALL approved pension schemes, like the NHSPS.
For most people, this change will increase opportunities for tax efficient saving for retirement. Only consistently high earners with long membership and/or substantial other pensions savings are likely to be adversely affected.
Changes to existing earnings, contributions or membership limits or improvements to current main scheme benefits are under discussion. However, the rules have been changed to allow higher savings in the separate NHS Money Purchase (MPAVC) scheme and to allow lump sums of up to 25% of the AVC fund only. More information about this can be obtained from your AVC provider.
The information in this section of our website is based on our current understanding of the new tax regime and is designed to tell you about the main changes and where to find more information if you are likely to be affected. The information will be updated as it becomes available, so you may wish to come back at a later date. It does not constitute legal or financial advice and does not over-ride any provision in Scheme Regulations, the Finance Acts or any other legislation. You should carefully consider taking independent financial advice before making any decisions affecting your personal finances.