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Optimizing wife’s pension contributions
I am a 45%
tax payer, currently in excess of the Life Time Allowance on my SIPP, so I am
only contributing the min to match my employer’s contributions.
My wife is currently a stay at home mother. She is now returning to the workforce and we are looking to optimize her pension contributions so that she eliminates any 40% tax charge.
We have a number of Buy To Let properties, which are held in her name for tax efficiency. They return approx. £30k gross, with approx. £5k maintenance costs and £10k mortgage interest.
Her new job will pay £48k per year, and the pension scheme is employer matched at 5% on both sides
What is the optimal amount we should put into her pension through salary sacrifice?
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