Annual Allowance
Cavendish Medical was founded to offer financial advice for doctors. We specialise in wealth management, retirement planning, pensions and tax planning, savings, investments and inheritance tax planning. We are particularly adept at navigating complex Annual Allowance issues for our clients to ensure they do not breach the strict new limits.
Expert financial advice
We have an extensive and up-to-date understanding of the constantly-changing government rules and regulations that could impact the health of your finances. For example, we can give unparalleled advice on the new, reduced Annual Allowance rates and how your finances could be affected.
The Annual Allowance restricts the availability of tax relief on pension contributions in any given year. The new allowance is just £40,000.
Calculating the allowance for the NHS pension is not straightforward so you should ensure you are looking at the same final figure as HMRC. You can breach the Annual Allowance rate by an increase in pensionable pay or by receiving a CEA.
You can use any unspent Annual Allowance from the previous three years, known as ‘carry-forward’. If there is no Annual Allowance to carry forward then the excess is treated as taxable income in the year it was accrued, resulting in a tax charge up to 45 per cent.
The decisions you make regarding your current income, savings and investments can make a substantial difference to the opportunities available to you in retirement. Make sure you have the best people for the job.
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