Investing in a pension could still be the most tax efficient solution or tax wrapper available. However, given that surgeons can often reach their lifetime allowance and that withdrawn pension income is taxable under income tax, additional solutions are often required to deliver multiple streams of tax efficient income and capital. BAAPS Members could consider utilising multiple tax wrappers (ISAs, bonds, and collective accounts), as they all provide access to different levels and types of tax reliefs. This could maximise the opportunity for tax efficient income or capital in the future.

Personal tax reliefs (tax year 2021/2022) include:

• • Personal income tax allowance: £12,500
  • Capital Gains tax allowance: £12,300
  • Savings allowance: up to £1,000
  • Dividend allowance: £2,000
  • Employee pension allowance: £40,000
  • Employer pension allowance: £40,000
  • Pension carry forward: up to £120,000
  • Enterprise Investment Scheme: up to £300,000 (on a £1m investment)
  • Venture Capital Trust up to: £60,000 (on a £200,000 investment)
  • Seed Enterprise relief up to: £50,000
  • ISA: £20,000
  • Junior ISA: £9,000
  • Gift allowance: £3,000