Quilter FOI reveals hundreds of doctors overpaid £11m in pension tax

Could have benefited from IP16

clock • 2 min read

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...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Cost of living driving uptick in overseas retirement considerations

Cost of living driving uptick in overseas retirement considerations

Two-in-three Brits approaching retirement have considered moving

Mark Battersby
clock 02 December 2022 • 2 min read
Retirement plans falling by the wayside amid cost of living adversity

Retirement plans falling by the wayside amid cost of living adversity

Survey shows many pre retirees are considering working in retirement

Hope William-Smith
clock 14 November 2022 • 2 min read
Only 1/4 advisers confident of meeting clients' retirement goals

Only 1/4 advisers confident of meeting clients' retirement goals

Advised investors less pessimistic about their retirement prospects

Ayesha Venkataraman
clock 31 October 2022 • 3 min read