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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. The same tax rules must apply identically
to everyone in the same situation, regardless of their employer.</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
Government has listened carefully to specific concerns raised by some high-earning
NHS consultants impacted by annual allowance tax charges.</p><p> </p><p>In response,
the Secretary of State for Health and Social Care has announced his intention to consult
on proposals for a new 50:50 option providing pension flexibility for senior clinicians
in the NHS. This flexibility will give senior clinicians in England and Wales more
choice in respect of their pension accrual, and therefore the ability to control better
any pensions tax charges.</p>
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