Moving my SIPP to my NISA is this a bad idea?

Notohulltigers

atush wrote: »

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Does the wife have a pension? Does she have a DC/PP? She has a personal allowance to use as well.

Wife has very small pension from a few years teaching so, sadly, her personal allowance will largely go unused...another downside of deciding to share 1 salary when we had children.

Still, mustn't grumble...

This has been a most useful sanity check...think I'm set now to gradually siphon off drawdown into NISA at 20% tax, facilitated by deferring SP by a year or two. I just, somehow, feel more comfortable with having it accessible. Now all that remains is the usual tortuous question of where to invest my little nest egg.

atush

You could contribute to a PP for her, using the allowance for those not in work- 2880 per year which get rounded up to 3600. Do this for enough years and you can use more of that PA. In a few years time, she will be able to transfer around 1K of it to you- but NOT if you are paying HRT then?

kidmugsy

atush wrote: »

You could contribute to a PP for her, using the allowance for those not in work- 2880 per year which get rounded up to 3600. Do this for enough years and you can use more of that PA.

Spot on, atush. Getting out pension money at 20% tax and then getting the 20% back again by contributing for his wife is an excellent policy. She can contribute £2880 net (£3600 gross) per annum until she is 75 if that appealed. The other thing to look at is using some of husband's surplus income to ensure that wife gets a large-as-possible State Retirement Pension. Again, that would make use of her Personal Allowance.

P.S. Even look at a Purchased Life Annuity for the wife as a further means of using up the PA?

Notohulltigers

atush, kidmugsy...thank you...have just Googled and got my head around this and it sounds like a perfect solution for us. I was completely unaware this was possible.

However, as well as a small pension (£140/ month), she had a few thousand in AVCs which has been moved into an HL SIPP and is now in drawdown, although she has never actually withdrawn any money from it. As she has a pension in drawdown, does that preclude her from having another pension in the savings phase which I could add £2,880 per annum to? (Or perhaps I should ask HL if I can reverse the decision to move the fund into drawdown?) Please bear in mind I really don't know what I am talking about.

atush

No, as her contribs will be under the new limit of 10K once introduced?

Although I think the limit is for people who have actually taken income from a pension. Not just going into a DD plan w/o taking any?