We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Child Stakeholder Pension

ss53
Posts: 90 Forumite
I set up a stakeholder pension for my daughter several years ago. Contributions were grossed up by 20% for tax allowance.
Am I right in thinking that I only got this extra 20% as I (as the contributor to the pension) am at least a 20% tax payer. My daughter was not a tax payer so any tax relief must be down to my earning and tax contributions? My assumption here is that HMRC will only give tax relief if tax is actually being paid to the same or higher than the relief?
My daughter has now turned 18 and she receives the correspondence from the pension provider. She is still a non tax payer (student). Will turning 18 have changed the tax relief on the (ongoing) contributions.
Thanks.
Just noticed I posted this in Cutting Tax when probably more appropriate in Pensions - not sure how to move it !
Am I right in thinking that I only got this extra 20% as I (as the contributor to the pension) am at least a 20% tax payer. My daughter was not a tax payer so any tax relief must be down to my earning and tax contributions? My assumption here is that HMRC will only give tax relief if tax is actually being paid to the same or higher than the relief?
My daughter has now turned 18 and she receives the correspondence from the pension provider. She is still a non tax payer (student). Will turning 18 have changed the tax relief on the (ongoing) contributions.
Thanks.
Just noticed I posted this in Cutting Tax when probably more appropriate in Pensions - not sure how to move it !
0
Comments
-
From memory the £2880 (£3600 gross) was the maximum one could pay into the stakeholder pension scheme where the scheme member was not an earner. It is, therefore, by reference to your child, not youThere are 10 types of people in the world - those who understand binary and those who do not. :doh:0
-
Will turning 18 have changed the tax relief on the (ongoing) contributions.
No. Contributioned up to £3600 gross p.a. automatically get basic rate relief even if you are a non taxpayer.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.4K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 241K Work, Benefits & Business
- 617.3K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards