Dental Tribune United Kingdom Edition

P ublic sector workers go- ing on strike, fundamental changes in legislation, the scrapping of having to purchase an annuity at age 75 and the issue of whether associates operating through a limited company are able to accrue future benefits in the NHS Pension scheme – 2011 was certainly a year of constant change and debate in the world of pensions. Ray Prince, Certified Financial PlannerCM, looks at some of the changes (see the end of the article for details of how you can request the ‘New Pen- sions Rules’ Special Report). Even though pensions can ap- pear complex, the good news is that they still retain their attrac- tive tax breaks. This means for higher rate taxpayers a contribu- tion of £100 only costs £60 and for basic rate taxpayers the same contribution costs £80, with the Government providing the £40 and £20 respectively in tax relief. It’s even better for additional rate taxpayers with a 50/50 split. On 6th April 2006, life was meant to get easier for retire- ment savers as the government introduced a new simplified set of rules, effectively shelving the eight previous tax frameworks for pensions. Known as ‘pension simplification’, investors now had to grapple with many new terms, such as lifetime allowance and annual allowance. However, as you’ll no doubt be aware the world of pensions has a habit of being tinkered with by politicians, so it was no surprise that even more changes were announced, some of which were implemented in April 2011 with more to follow in April 2012. As financial practitioners, we empathise with clients who are trying to make sense of the changes! With the new rules come new dilemmas for would- be investors, as well as those already building up their retire- ment nest eggs. There may defi- nitely be a tax ‘sting in the tail’ for some dentists. Whilst we aren’t able to cover all the recent pension changes in this article, let’s look at two in particular: the Annu- al Allowance and the Lifetime Allowance. Since it is usually best to use examples of how these changes could affect you, let’s briefly look at the new rules, and then some figures. Annual Allowance (AA) This is the maximum amount of tax free pension savings you can contribute in a tax year, in- cluding the NHS Pension Scheme and other registered pension schemes (such as Personal Pen- sions). Please be aware that this calculation is not what you con- tribute to your NHS Pension in a year but how your benefits have grown. This is known as the Pen- sion Input Period (PIP) which currently runs 1 April – 31 March each year. • Previously £255,000 pa, the AA is now reduced to £50,000 pa – fixed until 2015/16 • Where this is exceeded, any un- used allowance from up to three previous years is available (carry forward) • If the limit is exceeded, the member will be liable to pay a tax charge at the highest rate on the excess above the AA limit • Deemed contributions to the NHS Pension Scheme will be val- ued using a flat factor of 16. Pre- viously the factor was 10, so this is a key change • An inflation factor is included The full implication of these changes can be seen in the ex- amples below, and higher earn- ers could well be affected. Lifetime Allowance (LTA) This dictates how big an overall pension fund you can amass over your lifetime, excluding State Are you prepared? Ray Prince discusses the new pension rules February 6-12, 201218 United Kingdom EditionMoney Matters For more information, contact BioHorizons Customer Care: +44 (0)1344 752560 or visit us online at www.biohorizons.com Laser-Lok 3.0 is the first 3mm implant that incorporates Laser-Lok technology to create a biologic seal and maintain crestal bone on the implant collar1 . Designed specifically for limited spaces in the aesthetic zone, the Laser-Lok 3.0 comes with a broad array of prosthetic options making it the perfect choice for high profile cases. SPMP10109 REV D SEP 2010 1. Radiographic Analysis of Crestal Bone Levels on Laser-Lok Collar Dental Implants. CA Shapoff, B Lahey, PA Wasserlauf, DM Kim, IJPRD, Vol 30, No 2, 2010. 2. Implant strength & fatigue testing done in accordance with ISO standard 14801. 3. Initial clinical efficacy of 3-mm implants immediately placed into function in conditions of limited spacing. Reddy MS, O’Neal SJ, Haigh S, Aponte-Wesson R, Geurs NC. Int J Oral Maxillofac Implants. 2008 Mar-Apr;23(2):281-288. 4. Human Histologic Evidence of a Connective Tissue Attachment to a Dental Implant. M Nevins, ML Nevins, M Camelo, JL Boyesen, DM Kim. International Journal of Periodontics & Restorative Dentistry. Vol. 28, No. 2, 2008. • Two-piece 3mm design offers restorative flexibility in narrow spaces • Implant design is more than 20% stronger than competitor implant2 • 3mm threadform shown to be effective when immediately loaded3 • Laser-Lok microchannels create a physical connective tissue attachment (unlike Sharpey fibers) 4 Treat small spaces with confidence Introducing the Laser-Lok® 3.0 implant Human histology shows the apical extent of the junctional epithelium below which there is a supracrestal connective tissue attachment to the laser microchannel surface2 . Radiograph shows proper implant spacing in limited site. Laser-Lok 3.0 placed in aesthetic zone. Image courtesy of Michael Reddy, DDS Image courtesy of Cary Shapoff, DDS Treat small spaces with confidence spaces with confidence spaces with Introducing the Laser-LokIntroducing the Laser-Lok® 3.0 implant3.0 implant Bio Horizons_treat small.indd 1 01/03/2011 16:33