Pru GAR pension to annuity

srcandas

kidmugsy wrote: »

Note that the anti-recycling rules are intended to inhibit the recycling of Lump Sums - you can cheerfully recycle as much of the annuity as you like. That may be another reason to draw the maximum GAR annuity.

Problem with that is I might get bitten again when I take a lump sum in the future from my SIPP.

In reality if I don't find a loophole my partner is destined to be limited to a minimal pension or I'm restricted on any tax free lump sum. That clearly is not the intention of HMRC but is the reality.

But I'm working on it :beer:

srcandas

Here's a plan!!!

Supposing I take the lump sum and use it to pay off a mortgage. And then I send HMRC the two documents, the receipt of the lump sum and the payment to the mortgage company, and ask them to acknowledge that I am not recycling.

Or if a mortgage repayment doesn't do it how about an invoice for home improvements?
Just an idea :beer:

kidmugsy

I don't know how fierce the anti-recycling action is. A friend of mine retired with a lump sum and a redundancy payment. He bunged the part of the redundancy payment exposed to 40% income tax into a SIPP. I suppose the HMRC could have argued that cash is fungible and that it was "really" the lump sum that went in to the SIPP, but they didn't. Mind you, he did actually retire. People who draw a lump sum but don't retire might be scrutinised more intently. On t'other hand, the £50k p.a. cap on pension contributions was introduced after the anti-recycling rules were written, and may anyway do much of the job that those rules were intended to do.

A suggestion: write a new post asking for people's experience of the anti-recycling rules. You may then learn something to your advantage.

atush

Atush has my partner be talking to you??? I won't be
trapped that easily

Glad to think (well not really) she is such a gold digger? I am sure she would take a dim view of that.

I was talking about your wishes she should receive income/pension after your death. Not now (in case of divorce). She cannot receive the full beneift of a Sipp and other pensions and investments if she is not a wife but a partner in many/most cases. Even if you make her a beneficiary the tax is complicated by relationship.

If you are married you can transfer assets between you back and forth tax free (incl cap gains).

As far as pension, we have spoken abt this before and you haven't dont eh work to find out her true UK (or spanish) entitlements. As your wife (not partner) she can get 60% of a full pension just on using your contrib record, and 100% of a state pension after yoru death. As a partner, not wife, wife she gets only what has been accrued under her own steam.

given your non married status, and your wife's domicile, you need specialist (tax.inheritance) advice. Some of your assumptions are incorrect I fear.