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<p>The Government keeps public sector pay and pensions policy under constant review
in the context of the wider public finances.</p><p> </p><p>Pensions tax relief is
one of the most expensive reliefs in the personal tax system. In 2017/18 income tax
and employer National Insurance Contributions relief cost over £50 billion, with around
two-thirds going to higher and additional rate taxpayers.</p><p> </p><p>The tapered
annual allowance is therefore focused on the highest-earning savers, to ensure that
the benefit they receive is not disproportionate to that of other pension savers.
Less than one per cent of pension savers will have to reduce their saving or face
an annual allowance charge as a result of the tapered annual allowance.</p><p> </p><p>The
Government recognises that some senior clinicians face tax charges owing to the increase
in the value of their pension accrual. The tax rules must apply identically to everyone
in the same situation, regardless of their employer.</p><p> </p><p>However, the Secretary
of State for Health and Social Care has announced plans to consult on proposals for
a new flexibility for senior clinicians in the NHS pension scheme via the introduction
of a 50:50 option. This option will give senior clinicians in England and Wales more
choice in respect of their pension accrual, and therefore better control in relation
to any pensions tax charges.</p><p> </p><p><strong> </strong></p><p><strong> </strong></p>
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