income drawdown paid to spouse

gericom10

Is it possible to have income drawdown paid to my wife as she does not work to avoid as little tax as possible.

I intend to take the 25% TFC at 50, but carry on working. I know I could leave the income without drawing any, but would prefer to access the approx £7K a year. As I am a basic rate taxpayer but close to the 40% bracket, I don't want to take the £7K if all of it gets taxed heavily.

The pension plan is with NU and is in my name.

Both of us will be 50 before 2010

EdInvestor

Nope, not allowed.You could give the 25% tax free cash to your wife so that the income from that is in her name.

It's at times like these that people realise that tax relief is really tax deferred.

I do hope you got higher rate relief going in, it would really be very bad planning to get basic rate going in and pay higher rate coming out

A sackable offence if an advisor was involved IMHO.