Tax loophole with SIPP, advice please

happyhero

So would I be right then in thinking, if things stayed roughly the same, good pension planning would be to have my wife work as long as possible(she says she doesnt like the idea of stopping work but may be forced to by council rules) becuase that allows us to keep putting more in her Sipp and so get bigger top ups?

And then when she does stop work and her SIPP contribution allowance is reduced to £3600 (gross) that we then live on and burn up the crystalised 75% part first before starting to draw any other pension, but try to keep the amount she draws under her personal allowance so that she gets it tax free completely.

And in doing this, defer taking any pensions to also prevent her going over her personal allowance and at the same time hopefully increase them since we are not taking them straight away?

And of course for us both to keep contibuting new to a SIPP every year until 75 creating new pots.

Does that all make sense and is it good planning?

I do have a couple of VCT's already from many years back when I used them to avoid capital gains tax. I've kept them running for the regular income but I don't think I really fancy getting anymore as I know they deal in more risky small companies and I find it difficult to start a new one now that I would feel confident with, especially so when compared with how I perform with the Funds and Shares I invest in now in my ISA's although I wish I had got a few more VCT's in the past now like my stepfather did which generates quite a nice income for him over the year, not vast but nice.

jamesd

Yes, that makes sense and looks like a good plan.