The Scottish Government has announced that doctors at risk of incurring an excess pension charge in 2019/20 may withdraw from the NHS Pension Scheme during the period 1 December 2019 to 31 March 2020. The contributions which would have been made to the pension scheme by the NHS during that time will then be paid to the doctor as additional salary on which tax and NIC will be levied as usual. A doctor can participate in this measure if they make a successful application to the NHS and have evidence that they will be at risk of incurring an excess pension tax charge in 2019/20.
This is an interim measure introduced while the UK Government continues to consider the whole matter of pension excess tax charges in the public sector. It has been identified that some doctors may be turning down NHS work to mitigate any such charge so the Government has stated that this measure is intended to offer an alternative option.
Please note that this content is for general information only and is not intended to be advice to any specific person.