Budget 2020: Chancellor ups tapered annual allowance by £90,000

High earners were hit with tax penalties for breaching the tapered annual allowance which led consultants and GPs into refusing to take extra shifts as they would lose out financially. Sunak said in his Budget speech: "The pensions tax system is preventing doctors taking on more hours. "To significantly reduce the amount of people the tapered annual allowance affects, I am increasing the taper threshold by £90,000 removing anyone with income below £200,000. Based on their vital work for the NHS that will take around 98% consultants and 96% of GPs out of the taper altogether." Ex-pe...