Click Fraud Protection Tracking Pixel
Google Reviews
Google Reviews
0330 088 11 56     A A A

Maximum Headroom

Posted on May 23, 2013 in Articles & Frank Taylor & Associates

Are you at Max(imum) Headroom?! If you are considering retirement in the next few years then FT&A Finance warn that you must consider a ‘headroom check’. Like the vast majority of dentists, you are probably not aware of the Standard Lifetime Allowance? In April 2012 the Standard Lifetime Allowance (LTA) for pensions was reduced from £1.8 million to £1.5 million. This means any pension assets held on retirement exceeding £1.5 million will be taxed at 55%. This has sparked a necessity for higher earners nearing retirement to perform what is known as a Headroom Check to make sure that their level of pension contributions won’t take them over the £1.5million and incur a large tax bill on retirement. Dino Charalambous of FT&A Finance explains, “£1.5 million isn’t as huge and uncommon a figure as you might expect. Where this can really have an effect is when a dentist receives an NHS pension. A specialist advisor (who really understands dentistry) will be able to advise on effective financial planning to minimise the effects. A range of solutions including taking your NHS pension enhanced cash lump sum or contributing to ISAs can be deployed.” If you are nearing retirement (or even if it’s some way off yet), it is always best to be prepared and know where you are at. Call FT&A Finance on 08456 123 434 for some helpful advice.

Get in touch

Please provide your details below and a member of our team will be in touch with you shortly.

Claim your FREE guide 10 Top Tips for Selling a Dental Practice
Frank Taylor & Associates

© Frank Taylor & Associates, 1 Bradmore Building, Bradmore Green, Brookmans Park, Hertfordshire AL9 7QR. All rights reserved.

Dental Website Design by Digimax Dental

Do you want to:
No thanks, please take me back to the main site.