Ooh, Time to Start Speculating About LTA Changes Again

Secret2ndAccount

Health Secretary is speaking. She says that there will changes to pensions rules which are causing Doctors to retire early when they would be happy to stay in the service.
LTA increase coming?

Clive_Woody

LTA increase....only if you're a medic perhaps

MX5huggy

Maybe just do something with NHS pension rules, like let you stay in it but cap qualifying salary. 

NoMore

Doubt it will be a general uplift to LTA, it will be targeted to NHS workers. How ? I don't know.

DoublePolaroid

I know of one doc who retired earlier than he would have partly due to LTA. 

I know multiple docs who have refused extra work due to AA concerns. Personally I was on the verge of reducing my hours despite not wanting to, due to AA issues, though ultimately decided against it. I recognise that is an exceptionally fortunate position to be in, but the law of unintended consequences nevertheless is adversely affecting the workforce. 

EdSwippet

DoublePolaroid said:

... but the law of unintended consequences nevertheless is adversely affecting the workforce. 

Unintended perhaps, but certainly not unanticipated:

Setting the standard Lifetime Allowance from 2021 to 2022 to 2025 to 2026 - government policy paper

Policy objective

To support the government’s objective of a system of pensions tax relief that is fair, affordable and sustainable.
...

Impact on individuals, households and families

...

Where individuals now breach the lifetime allowance, some may reduce their hours or retire earlier than they want to, to stay within the lifetime allowance. ...

Secret2ndAccount

Hmm, gov.uk does now say "changes will also be made to NHS pension rules", not pension rules in general.
Stand down.

gm0

What you get taxed on income, wealth, purchase, property transaction should not change based on what you happen to do for a living.  MP, Judge, Doctor, Lawyer, Engineer or Airline pilot.

Very bad idea to craft a further complication as a special privilege for doctors. 

But then the reason we are in the mess is down to prior short termism and too clever for their own good ideas from treasury civvies to fill the "hole" demanded by the politician chancellors of the day. 

This donkey is well up the tower.  No happy ending is likely.

marlot

gm0 said:

What you get taxed on income, wealth, purchase, property transaction should not change based on what you happen to do for a living.  MP, Judge, Doctor, Lawyer, Engineer or Airline pilot.

Very bad idea to craft a further complication as a special privilege for doctors. 

But then the reason we are in the mess is down to prior short termism and too clever for their own good ideas from treasury civvies to fill the "hole" demanded by the politician chancellors of the day. 

This donkey is well up the tower.  No happy ending is likely.

Funny you should mention judges.  I believe they are already exempt from the LTA and annual allowance rules.  This is because their pension is tax unregistered.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1064081/jps-scheme-guide-2022-not-accessible.pdf

SouthCoastBoy

I think it is a dangerous precedence to deal with professions differently with respect to  taxation. Everybody needs to be treated equally, imagine it could be quite a vote loser. 

LHW99

I can understand the AA as limiting the tax relief the Government has to give, but the LTA has always seemed more of a limit on investment performance IMO. Two people could put the same amount into a pension, one chooses "plodding along" funds and one chooses higher risk, higher reward funds. While there are no guarantees, one could hit the LTA, and one not.