Budget 2015 - What It Means For Doctors In Bristol

We have dissected and re-dissected this year's budget and here provide a summary of what it all means for Bristol's doctors. Please note this summary only covers changes announced in this budget and items we feel are of most interest to doctors. Please contact us on richard.higgs@wealthwestmedical.co.uk or telephone 0117 966 5699 for a full financial review. 

Income Tax

From April 2016, there will be a tax-free personal savings allowance to remove tax on savings income of up to £1,000 for basic rate taxpayers and £500 for higher rate taxypayers. This will be in addition to the £5,000 zero starting band for savings income.

The personal allowance for doctors will be £10,600 for the 2015/16 (the amount you earn before you start paying tax). In addition, this personal allowance will increase by £200 over the following two tax years to £10,800 for 2016/17 and £11,000 for 2017/18.

The basic rate limit for tax for doctors will be £31,785 for 2015/16 (the amount you earn where you pay tax at 20%). This basic rate limit will increase to £31,900 for 2016/17 and to £32,300 for 2017/18. As a result, the higher rate threshold (your total earnings before you starting paying tax at 40%) will be £42,700 and £43,300 respectively.

The zero starting rate band for the first £5,000 of savings income will be held at this amount for the 2016/17 tax year. Remember this will be in addition to the tax free personal savings allowance.

If you are a doctor with modest savings income it may be that you will benefit from these allowances. Keep an eye out for the higher rate threshold - keeping out of the 40% higher rate tax is a useful strategy, particularly for doctors with private earnings.

Capital Gains Tax

From 6th April 2015, the annual exempt amount increases to £11,100. This is the gain you can make on the sale of capital assets before you start paying capital gains tax (at 18% and 28%). Typically, this will be doctors with share portfolios showing gains - it is really important to use your capital gains allowance each year, perhaps re-investing the proceeds into tax efficient wrappers like ISAs.

In terms of Entrepreneurs Relief, typically on the sale of a Limited Company set-up by doctors with private fee income, gains qualifying for entrepreneur's relief remain at 10% tax on cumulative lifetime gains of up to £10m. Please note that doctors will be able to defer gains, which are otherwise eligible for relief, by investing in an Enterprise Investment Scheme and benefit from entrepreneurs relief when the gain is realised at a later date.

For queries regarding entrepreneurs relief and the setting up of Limited Companies for private fee work please get in touch.

Savings and Investments

For younger doctors, perhaps trainees who have moved to the Bristol area to work, of interest maybe the 'Help To Buy ISA' available from Autumn 2015. This has been introduced to boost savings for first time home buyers. The Government will pay £50 for every £200 saved subject to a maximum of £3,000 which will be paid at the time the property is bought.

In further amendments to the ISA rules, from Autumn 2015, the Government will allow doctors to withdraw and replace money from their cash ISA without this counting towards their annual ISA subscription provided they make a repayment in the same tax year as the withdrawal.

The Government will also be making amendments to the Venture Capital Trusts and Enterprise Investment Scheme rules to further allow investment into smaller and growing companies. Remember, doctors can obtain a tax refund of 30% of the amount invested in a VCT or EIS.


The Lifetime Allowance will be reduced from £1.25m to £1m from 6th April 2016. 

New transitional Fixed and Individual Protection will be introduced.

The Lifetime Allowance will be indexed annually in line with CPI from 6th April 2018.

Do you know what the value of your NHS Pension Scheme is combined with any personal pensions? This change could effect you and perhaps require application for another form of protection.

For a full financial review incorporating how the budget changes may effect your financial plans then get in touch on richard.higgs@wealthwestmedical.co.uk or telephone 0117 966 5699.
















More News
Can doctors trust the rising market? Monday, July 23, 2018
Quote Mark
  • "We have been very impressed with the personal service, attention to detail and comprehensive evaluation of our financial circumstances. We would certainly appreciate ongoing help and support from Richard over the future." Jason Kendall (Consultant in Accident and Emergency), Southmead Hospital
  • "Richard provides a very convenient and personal service. Richard has good knowledge and has the ability to go through reasoning for any recommendations." Tim Mitchell (GP), Montpelier Health Centre
  • "Richard provides an excellent service, prompt and flexible. Although the level of technical knowledge is impressive, answers to our questions are presented in a straightforward manner, without overwhelming us with information." Mary Gainsborough (Consultant in Paediatrics), Southmead Hospital
  • "Richard gives me an excellent personal service in my own home. His advice and explanations have been excellent. Richard also has excellent technical knowledge – who wouldn’t be happy?" Charles Record (GP), Frome Valley Medical Centre
  • "Richard provides an excellent, personal service. He responds very quickly and attentively to queries and very much keeps me up to date with important matters that affect me - such as the latest changes to pensions, investments and taxation. Recommendations are delivered in a timely, effective manner - usually face to face in my own home." Professor Gianni Angelini (Head of Cardiothoracic Surgery), BRI
  • "It is very convenient for me to be seen at home and Richard is very flexible with timings - especially when unexpected things crop up at the hospital. Meetings are friendly and relaxed with my long-term best interests very much at the heart of discussions." Professor Gianni Angelini (Head of Cardiothoracic Surgery), BRI
  • "We have found it far more reassuring having a local adviser rather than a national firm. We have found the service excellent and Richard answers all the questions we want answering. Richard's technical knowledge is excellent, he has detailed knowledge of pensions." Paul Male and Helen Lewis (GPs), Thornbury Health Centre
  • "The personal touch counts for a lot and the willingness to visit us at home is much appreciated. Richard provides an excellent, friendly, accessible service, not encumbered by jargon or salesmanship." Professor Peter Mathieson (Honorary Professor of Medicine), University of Bristol
  • "I can recommend Richard as providing measured, balanced independent financial advice. He listens very carefully and tailors advice appropriately in a knowledge-based manner. He is very accessible and gives his clients time and clarity in order to make the most sensible decisions for themselves based on the available facts." Andrew Medford (Consultant in Respiratory Medicine), Southmead Hospital
  • "Richard now knows me and understands my financial position. I have complete trust in his advice. The level of service I have experienced is second to none. We have received regular reviews in our own home, speedy and thorough advice to any queries." John Rees (General Practitioner, Specialist in Urology ), Blackwell and Nailsea Medical Group
  • "The advice I have received has dramatically altered my personal protection policies for the better and reduced my personal tax liability." John Rees (General Practitioner, Specialist in Urology ), Blackwell and Nailsea Medical Group
  • "I appreciate Richard's local knowledge and the fact that he is in contact with a lot of local general practitioners which is useful for networking. He is also very knowledgeable about the different pension schemes and their pros and cons." Fiona Hayes (General Practitioner) Bristol University Student Services
  • "I have enjoyed the process of dealing with a local advisor and it has not felt like a box ticking exercise. The service has been excellent. The great flexibility to come to my home at a time suitable to my working day has set this company apart from others I have dealt with in the past. The technical knowledge provided has been expertly tailored to my requirements and financial situation. The manner in which it has been delivered has also been first rate. " Beth Harrison (General Practitioner) Montpellier Health Centre
  • "We have regular meetings with the same adviser who knows our profile and keeps our requirements in mind with the plans he makes. The reviews are simple to organise and are always at a convenient time and location." Mike Bould (Orthopaedic Surgeon) Western General Hospital
  • "The service I have received from Wealth West is excellent! they are more personable and accessible than large firms and are not pushy at all. They also have a very good breadth and depth of knowledge." Billy and Annie Headdon (Anaesthetics and Intensive Care Trainee, General Practitioner) Montpelier Health Centre
  • "My experience of the service has been excellent. I have been able to ask many questions and have received excellent advice on my financial situation. The technical knowledge of Wealth West Medical is excellent. Anyone who can help my investments grow in the current environment clearly knows what they are doing. I would highly recommend Richard and Wealth West Medical." Linda Buczek (General Practice Manager) Bishopston Medical Practice
  • "The technical knowledge of Wealth West Medical is very good. Richard keeps up to date with the changes to the NHS pension scheme and new legislation." Melanie Lockett (Consultant) Southmead Hospital
  • "Wealth West Medical offers a friendly, helpful and efficient service. Richard keeps in touch at regular intervals and has a very good knowledge of pensions and investments." Rachel Brown (General Practitioner) Montpelier Health Centre
  • "Richard comes to my house for meetings and it is nice to see a familiar face. He remembers my details, and advises over the long term. Richard has a detailed understanding of my particular pension plan and has explained this very clearly to me. He has also helped me to manage tax payments for annual allowance and pension protection." Hugh Herzig (Consultant Psychiatrist) Southmead Hospital
  • .