Sharing a Pension 15 January 2020 at 1:31PM edited 30 November -1 at 12:00AM in Pensions, Annuities & Retirement Planning 8 replies 607 views

L198913

My partner and I have lived together for more than 10 years and are both retired. We both receive a government pension but my partner also receives a private pension and has to pay tax on this. Is there any way that the remainder of my allowance can be offset against his pension to reduce the tax paid?

cobson

If you were married or in a civil partnership then this would apply:

https://www.gov.uk/marriage-allowance

L198913

Thanks for quick reply.

We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?

cfw1994

I'm no expert, but I would suggest the answer will certainly be "no" - pensions belong to an individual.

JoeCrystal

L198913 wrote: »

Thanks for quick reply.

We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?

No, absolutely not. So in order to take advantage, you need to get married or enter a civil partnership.

nigelbb

JoeCrystal wrote: »

No, absolutely not. So in order to take advantage, you need to get married or enter a civil partnership.

The UK marriage allowance is worth at most £250 & only applies to basic rate tax payers. In France the system is far more generous to couples & families as the total income is effectively spread over two whole personal allowances for a couple so is especially advantageous if there is a big disparity in income. Dependent children are counted too so if you have two kids then effectively the total family income is spread over three personal allowances.

DairyQueen

L198913 wrote: »

Thanks for quick reply.

We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?

The only way to receive any direct benefit from another person's pension (whilst they are living) is to be their spouse and then divorce. Courts have the power to make orders to transfer pension assets (or earmark benefits directly to the ex spouse) on divorce.

I would not recommend this as a tax-saving strategy.

Did you consider asking your OH's former employer to pay you a portion of their salary before they retired? Same principle.

cloud_dog

OP, if the private pension is a older style defined benefits/final salary scheme you may also want to investigate your standing re the pension should your partner precede you.

atush

L198913 wrote: »

Thanks for quick reply.

We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?

No.

If you want the tax perks that come with being married or CP, the get there.

There are also inheritance issues with getting some pensions if not married tax free, or any survivor benefits.