Pension Protection Fund

r1dgeback

Hi

2 questions.


1. I am in full time employment and also being paid a small pension of circa £600pm (by PPF) this is all being taxed @ 20%, could I transfer this to my wife's name and use her tax code as she is not working?

2. Or with the new rules coming in April would I be able to take any money out of this and re-invest.

Regards

MoneySavingUser

1. No - it is not transferable (unless say you got divorced and she was awarded part of it...)
2. No - the new rules are for DC pensions - you can transfer from DB to DC but only before you start taking the benefits

kidmugsy

Nope. Nope.

But you could contribute £240 p.m. to a pension for your wife. (The taxman makes that up to £300.) That would leave you £240 p.m. to contribute to a pension of your own. In a way then you'd be using the PPF money to build up investments under your own control.

Cyberman60

Oh yes, the PPF set up after Brown's disastrous tax raid in 1997 caused many private company pension schemes to fail.

r1dgeback

Thank you both, it was worth a try

atush

Actually, in a couple f years, you will be able to use up to 1K of your spouse's unused personal allowance- that will help.

But the best thing to do, is to do as said above and use the old pension to make new pension contributions that you (and she) can take later on using the new rules.

Obv if you take these new pensions later when you have stopped working, you will have personal allowance to spare that will mean you pay no tax on the 600/m and less tax on the new pension as well.

TH1878

r1dgeback wrote: »

Thank you both, it was worth a try

If you don't need the income from the pension, why not just reinvest it back into a pension?

Unless you are a higher rate tax payer (in which case you're best putting it all in your own pension) set up a pension for your wife and pay £2,880 pa into it. This will be grossed up to £3,600 and she will be able to withdraw all of it tax free (assuming she remains a non-taxpayer) from April 2016 when it will be taxed at her marginal rate.

Pay the remainder into a pension in your name and draw it down as and when you need it.