Personal Pensions - A-Day etc...

village_life · 6 April 2006 at 12:08PM

Hi

Quick backdrop, I currently earn over £32,400 so in 40% tax bracket, have (what appears to be) good occupational pension.

Wife to be is about to start a PHD, after that, likelihood is she would go into irregular type employment (contracting, research etc)

For this reason we're looking to get her a Private pension - we need to see an IFA but busy with a house move, wedding etc at the moment.

Today I had a thought, on the back of A-Day:

could we set up a private pension in my name (but ultimately for her!) and benefit from 40% tax relief!? - What would be the implications on my current occupational pension, and if i died etc - would she still get access to the entire pension fund?

if not, can we set it up under a joint name etc- i'm just wanting a way of getting the highest benefit (40% tax relief) but covering wifey to be in case of anything happening to me

her preference is to save for a BTL as she's read that you only pay tax on the diff. between the rent you earn and the mortgage payment (or something like that, not discussed in detail)

Anyone got any bright thoughts on whats best? :j :j :j

:beer: :beer: :T :T

EdInvestor · 6 April 2006 at 12:25PM

could we set up a private pension in my name (but ultimately for her!) and benefit from 40% tax relief!?

When are you planning to have the death then?

For a basic rate taxpayer with no employer contribution, an ISA would be better than a pension because as of today the rules change and you can put large lump sums into the pension any time and get tax relief.Whereas the ISA tax perk is an an annual "use it or lose it" one.

Yields are so low on BTL property these days and capital gains unlikely to be very big so it's scarcely worth bothering even with the benefit of gearing IMHO.