How does the NHS pension annual allowance work for GP partners?

Each tax year the growth in your NHS pension is valued and compared with the annual allowance, which is £60,000 for 2026/27. Above £260,000 of adjusted income it tapers, to as little as £10,000. Growth above your allowance, after any unused allowance carried forward from the last three years, is taxed at your marginal rate.

How the growth is measured

Opening value: Your pension at the start of the year multiplied by 16, plus any separate lump sum, then increased by CPI for the 12 months to the previous September.
Closing value: Your pension at the end of the year multiplied by 16, plus any separate lump sum.
Pension savings: The closing value minus the opening value, or nil if that is negative.
A 2015 scheme example: A pension of £40,000 growing to £44,000, with an illustrative CPI of 3%, gives savings of £704,000 minus £659,200: £44,800.

HMRC Pensions Tax Manual PTM053301. Checked 13 October 2026. 2026/27 rules. The Budget on 28 October 2026 can change them.

Your allowance

£60,000 is the standard annual allowance for 2026/27.
The taper reduces it by £1 for every £2 of adjusted income over £260,000, to a minimum of £10,000. It does not apply if your threshold income is £200,000 or less.
Carry forward adds unused allowance from the previous three tax years, if you were in a registered pension scheme in each of them.
Every pension counts together. Contributions to a personal pension or SIPP are added to your NHS growth.

gov.uk annual allowance and tapered annual allowance guidance, PTM055100. Checked 13 October 2026. 2026/27 rules. The Budget on 28 October 2026 can change them.

Your pension savings statement

NHSBSA writes by 6 October to members whose NHS growth exceeded the standard allowance, where it has their membership information by 6 July. For a GP, the growth cannot be worked out until the Annual Certificate of Pensionable Profit is complete, so the statement comes later. You can also ask NHSBSA for one.

If there is a charge, it is reported on your Self Assessment return. Scheme pays can settle it from your NHS benefits: how scheme pays works.

The NHS pension savings statement for a GP comes after the Annual Certificate of Pensionable Profit is complete.

Where this fits

We can work out your pension savings across the NHS scheme and any other pension you hold.

Pensions and tax for GPs, dentists and other professionals Get a complimentary health check

The advisers for this subject

Sunny Bharj

Independent Financial Adviser

Tony Springer

Independent Financial Adviser

Advising through Equity & General Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Check the firm on the FCA register under number 474163.