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Wesleyan warns doctors over Sipp symptoms

Wesleyan is warning that wide interest in putting property in Sipps could cause problems for high-earning groups and it singles out doctors.

The alert is particularly rel- evant, says Wesleyan director of marketing Callum Girvan, for younger GPs, say in their 30s, perhaps earning considerably less than the 100,000 peak salary of a GP.

Girvan warns that many GPs’ earnings will rise significantly over time, increasing to a level above the lifetime allowance on their NHS pension alone and triggering the 55 per cent recovery charge. GPs and others in similar situations should be dissuaded from putting their business premises into Sipps, he says and adds that, with 40 years’ service and a final salary of 130,000, GPs will reach the lifetime limit.

He says: “There is a real temptation to put properties in Sipps, perpetuated by some broadsheets. I think this scenario is quite likely for a large number of younger GPs with growing practices and could prove to be a real problem further down the line.”

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