Quilter has uncovered through a Freedom of Information (FOI) request that around 400 NHS doctors have paid more than £11m in unnecessary Lifetime Allowance (LTA) charges.
The wealth manager said the FOI data showed that 413 members who have retired and paid LTA tax charges could have benefited from Individual Protection 2016 (IP16), which enables individuals to protect their LTA from £1m up to a maximum of £1.25m based on the value of pension benefits at 5 April 2016. It found that the doctors had a collective total of £44,379,919, which could have been protected under IP16. Given that the LTA tax charge is 25%, if they had applied for IP16 before retiring from their profession, then these 413 members could have collectively saved £11,094,979, accordin...
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