BIM54025 - Doctors and dentists: purchase of added years

The National Health Service Superannuation Scheme permits medical and dental practitioners to provide for themselves `added years' for pension purposes. A practitioner opting to buy `added years' may-

a) make a single lump sum payment, which will not qualify for tax purposes,

or

b) elect to make the necessary payments by instalments, which are treated as qualifying for relief under the first paragraph of extra-statutory concession ESC/A9.

Any payments falling within (b) above are to be excluded from the contributions to be taken into account in determining the notional National Health Service Superannuation Scheme earnings. They are, however, to be included in the total NHS contributions to be deducted in the Schedule D assessment.