McCloud Remediable Pension Savings Statements (RPSS) update

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By Andy Pow

It's now 11 months since the statutory deadline for issuing statements passed and many doctors still await information to allow them to process their tax affairs accurately. In this article we provide an update of the issue and cover what’s changed and how deadlines have slipped.

The background

The McCloud rectification is about placing individuals back into their legacy pension sections (1995 or 2008) covering the period from April 2015 to April 2022. This was done because the transition of some individuals to the 2015 scheme was deemed illegal. This will change how pension benefits are calculated for many doctors.

Will everyone get a tax refund?

No. Whilst many will, there will be a cohort of people where the growth has gone up over this period due to the different ways the pension is calculated for the legacy 1995 and 2008 schemes and the 2015 scheme.

In addition, the process also covers the year 2022-23 as no disclosure on tax returns was needed for that tax year. So, you may have no adjustment for 2015 to 2022, but a charge for 2022-23 which would result in more tax being due.