New Pension drawdown. Can I use my wife's taxcode?

KKRay

I have a personal pension and under the new rules can draw it out from 2015 onwards. I want to draw sufficient to use up any of my unused tax free allowance. But my wife doesn't use any of her tax allowance (£10500). Can I draw more from the pension tax free by using her tax free allowance. Although the pension is in my name, the pension is for the benefit of us both.

Hopefully that is clear.

Many thanks

sleepless_saver

In the future you will be able to use a small amount of her allowance thanks to D Cameron's decision to provide financial incentives to people to get married. See link.

https://www.gov.uk/government/publications/transferable-tax-allowances-for-married-couples-and-civil-partners

KKRay

Thank you for the reply, very useful.

However it does pose another question.
When I request the drawdown from my pension (in 2015) can I nominate my wife as 100% drawdown benificiary, or alternatively 50% to me and 50% to my wife even though the pension is in my name?

dunstonh

You can still nominate crystallised pension funds just as you can with uncrystallised ones.

KKRay

Ok so that looks like the answer.
Nominate 50% of the drawdown to my wife to use her tax code and the remainder to me to use up my tax code. Thank you.

greenglide

Surely the proceeds of a pension can only be paid to the person named?

Nomination in pensions speak is normally for specifying the recipient(s) of death benefits.

KKRay

I'm not talking about the death beneficiaries. I'm asking if the drawdown payments (after crystallisation) can be split between me and my wife. One says no the other says yes.

kidmugsy

KKRay wrote: »

I'm not talking about the death beneficiaries. I'm asking if the drawdown payments (after crystallisation) can be split between me and my wife. One says no the other says yes.

If it were allowed we'd all be doing it. We're not.

lvader

kidmugsy wrote: »

If it were allowed we'd all be doing it. We're not.

You can do it, you just need to get a divorce. ;-)

Getting divorced to save tax isn't that uncommon in the US.

KKRay

The vote is:

Yes you can: 1
No you can't: 3

So I'm joining the 'No' camp

Divorce eh? That's interesting.....;)

kidmugsy

lvader wrote: »

You can do it, you just need to get a divorce. ;-)

Getting divorced to save tax isn't that uncommon in the US.

Oh, but the paperwork!