Share my pension

coolsteel

Quick question can I transfer say 50% of my sips pension to my wife to take advantage of our both tax personal allowances.


Thanks in advance

bowlhead99

Yes, by divorcing her and having a court say you're giving to her as a settlement.

One other option is for you to withdraw some of it paying the tax on the amount over your personal allowance, then having given her some of the cash, she makes a pension contribution and gets tax relief for doing so. In that way she will end up with some of what you currently have in your pension, in her pension instead.

Obviously the latter method is not as efficient if you are paying 40% marginal tax on taking it out and she only gets, say, 20% relief on contributing it back in. Or if she has limited earnings and so can't contribute more than a certain amount to a pension in the tax years concerned. But over a long enough period it could achieve the effect you're looking for, depending on personal circumstances and amounts etc.

martinsurrey

bowlhead99 wrote: »

Yes, by divorcing her and having a court say you're giving to her as a settlement.

Imagine the conversation tonight.

"So I was talking to a stranger on the internet, and, as a result, I think we should get divorced!"

dunstonh

Quick question can I transfer say 50% of my sips pension to my wife to take advantage of our both tax personal allowances.

If you want to do that, you need to do it in the accumulation stage. its too late once the money is in the pension (except divorce as mentioned above).

PensionTech

You say your "sips" pension. That isn't the Shipbuilding Industries Pension Scheme, is it? If so, the option bowlhead proposes may not be as flexible or readily available as suggested.

bowlhead99

Yes, my assumption was that it was a lazy typo for SIPP rather than SIPS, as if it was a specific occupational scheme he'd have named it properly to avoid getting only very general advice

coolsteel

PensionTech wrote: »

You say your "sips" pension. That isn't the Shipbuilding Industries Pension Scheme, is it? If so, the option bowlhead proposes may not be as flexible or readily available as suggested.

It is PT. ....

xylophone

It is PT. ....

Which being interpreted is??????

simonfitba

Hey, after a "divorce" you can always get back together. That'll show the tax man.

atush

Or you could just help your wife start a PP now (or up her work pension).

Even if not working, she can put in 2880 per year which is made up to 3600 with TR. If working, she can put in her entire income, or 40K whichever is the lower.