Pension recycling lump sum

jamesd

Audaxer said:

jamesd said:

It's OK provided the PCLS isn't paid to the other individual, that is, into a bank account that they have control over, which includes joint accounts where both have complete control.

No conflict there, besides the discussion here fleshing out just what it means to pay an individual.

Okay, does that mean that if the wife's PCLS is paid into an account in her own name, it is okay for her to pay contributions direct into the husband's SIPP?  

Probably yes, though the pros suggested using a bank account to make the gift, perhaps for the reason Linton mentioned.

Audaxer

jamesd said:

Audaxer said:

jamesd said:

It's OK provided the PCLS isn't paid to the other individual, that is, into a bank account that they have control over, which includes joint accounts where both have complete control.

No conflict there, besides the discussion here fleshing out just what it means to pay an individual.

Okay, does that mean that if the wife's PCLS is paid into an account in her own name, it is okay for her to pay contributions direct into the husband's SIPP?  

Probably yes, though the pros suggested using a bank account to make the gift, perhaps for the reason Linton mentioned.

Thanks @jamesd and @Linton. Yes, I agree that it would probably be more practical for the wife to transfer the money from her sole account to her husband's account to make the contribution. If the husband for example didn't have a sole current account, I think it would then be okay for the wife to transfer an amount from her sole account to the joint account for the husband to make the contribution to his SIPP from that account.

I think the most important point that I have learned here, is that the lump sum needs to go from the pension provider to an account in name of the individual alone first.  As I see it that is what would ensure that any subsequent contributions made to their spouse's pension cannot be classed as recycling of that lump sum.