Partner's Tax Relief

MisterBigNose

Hi. I pay into a workplace scheme and also into a SIPP. My wife doesn't work, so is a non-tax payer and contributes from some savings into her own SIPP to the maximum of £3600 pa allowed, (including the 20% tax relief that the govt pays in). As far as I can see there's no allowance on my tax code made for her £3600 pa, and I am wondering if this is correct or if I have to claim it?
Any advice welcome.

ratechaser

Why would you have to claim anything? She pays in £2880, the BR relief is added to take it to £3600, and she is done. There is nothing else she needs to claim and it has no bearing on your own allowance or tax position...

Dazed_and_C0nfused

MisterBigNose said:

Hi. I pay into a workplace scheme and also into a SIPP. My wife doesn't work, so is a non-tax payer and contributes from some savings into her own SIPP to the maximum of £3600 pa allowed, (including the 20% tax relief that the govt pays in). As far as I can see there's no allowance on my tax code made for her £3600 pa, and I am wondering if this is correct or if I have to claim it?
Any advice welcome.

You cannot get tax relief for pension contributions made by your wife.  If the money is going into her pension then she gets the £720 and that's it.  

Still a free and easy £720 though.

TVAS

If I say want I want to say I will get into trouble. So I will just simply say the above replies are correct. Your wife is getting something for nothing is that not enough?   

Marcon

MisterBigNose said:

Hi. I pay into a workplace scheme and also into a SIPP. My wife doesn't work, so is a non-tax payer and contributes from some savings into her own SIPP to the maximum of £3600 pa allowed, (including the 20% tax relief that the govt pays in). As far as I can see there's no allowance on my tax code made for her £3600 pa, and I am wondering if this is correct or if I have to claim it?
Any advice welcome.

The helpful answers from Ratechaser and Dazed are correct, but I wonder what has made you think that your tax code should be adjusted when your wife is paying in to her SIPP from savings? 

zagfles

Marcon said:

MisterBigNose said:

Hi. I pay into a workplace scheme and also into a SIPP. My wife doesn't work, so is a non-tax payer and contributes from some savings into her own SIPP to the maximum of £3600 pa allowed, (including the 20% tax relief that the govt pays in). As far as I can see there's no allowance on my tax code made for her £3600 pa, and I am wondering if this is correct or if I have to claim it?
Any advice welcome.

The helpful answers from Ratechaser and Dazed are correct, but I wonder what has made you think that your tax code should be adjusted when your wife is paying in to her SIPP from savings? 

Maybe because in most other respects, the government treats couples as one financial unit, eg tax credits, most benefits, council tax, student finance etc. Also true for income tax in a lot of other countries.

elouise01582

Are you getting confused about the marriage allowance? That has nothing to do with your wife's pension contributions and you would have to be a basic rate taxpayer?

MisterBigNose

zagfles said:

Marcon said:

MisterBigNose said:

Hi. I pay into a workplace scheme and also into a SIPP. My wife doesn't work, so is a non-tax payer and contributes from some savings into her own SIPP to the maximum of £3600 pa allowed, (including the 20% tax relief that the govt pays in). As far as I can see there's no allowance on my tax code made for her £3600 pa, and I am wondering if this is correct or if I have to claim it?
Any advice welcome.

The helpful answers from Ratechaser and Dazed are correct, but I wonder what has made you think that your tax code should be adjusted when your wife is paying in to her SIPP from savings? 

Maybe because in most other respects, the government treats couples as one financial unit, eg tax credits, most benefits, council tax, student finance etc. Also true for income tax in a lot of other countries.

Exactly. Thanks.

xylophone

Also true for income tax in a lot of other countries.

But it hasn't been true here for over thirty years.

House of Commons Library Briefing Paper

Number 4392, 14 January 2019

Tax, marriage & transferable allowances

Since the introduction of independent taxation in 1990, all individuals have been assessed for tax as separate persons. This reform reversed a principle that had underpinned the tax system for almost two hundred years: that a married woman’s income was simply part of her husband’s income and should be taxed as such.  

zagfles

xylophone said:

Also true for income tax in a lot of other countries.

But it hasn't been true here for over thirty years.

House of Commons Library Briefing Paper

Number 4392, 14 January 2019

Tax, marriage & transferable allowances

Since the introduction of independent taxation in 1990, all individuals have been assessed for tax as separate persons. This reform reversed a principle that had underpinned the tax system for almost two hundred years: that a married woman’s income was simply part of her husband’s income and should be taxed as such.  

Oh really? We have a transferrable marriage allowance. We have a "high income child benefit charge" where someone can be effectively taxed on their spouse's income. We have a "tax credits" system which is assessed on joint income for both married and unmarried couples.

The narrative around "independant taxation" is quite amusing, that it's some sort of important principle to give women "financial independance" etc and the old way of jointly assessing married couples for tax was somehow outdated and sexist. Funny then, how if a married woman on a low income goes to claim tax credits, or universal credit, or council tax reduction, or a student loan, the first question she'll be asked is "how much does your husband earn"

xylophone

Oh really?

Yes,really.

 https://www.twamleyandco.co.uk/factsheets/personal-tax/taxation-of-the-family#:~:text=Independent taxation means that husbands,for their own tax affairs.

Married couples and civil partners

Independent taxation means that husbands and wives are taxed separately on their income and capital gains. The effect is that both have their own allowances, savings and basic rate tax bands for income tax, annual exemption for capital gains tax purposes and are responsible for their own tax affairs. The same tax treatment applies to couples who have entered into a civil partnership under the Civil Partnership Act.

The CB situation (as many people  (including me) have argued) is an anomaly and unfair.