Third Party Pension Contribution to Daughter

Marcon

There is one third party contribution which doesn't get basic rate tax relief added: the employer's contribution. That is always paid gross so there's no tax relief to 'add'.

fergusonsfolly

wjr4.

She has a property but no mortgage, has full ISA's.

I want to be sure the contribution is going into her pension and not going into day to day spends.

I have tried two providers that she has investments with (AJ Bell and True Potential).

Neither can accept this facility.

Interstingly, I found by Googling "3rd party pension contributions UK AJ Bell" I found a video explaining exactly what I wanted to do. (cannot post the link for some reason).

Rang AJ Bell and the agent said this only applies to "AJ Bell Investcentre", (whatever that is) and would not be available to my daughter.

Seems a very simple procedure that I want to carry out, but obviously not the case.

dunstonh

Interstingly, I found by Googling "3rd party pension contributions UK AJ Bell" I found a video explaining exactly what I wanted to do. (cannot post the link for some reason).

Rang AJ Bell and the agent said this only applies to "AJ Bell Investcentre", (whatever that is) and would not be available to my daughter.

AJ Bell has multiple offerings for different distribution channels. Investcentre is the version used by IFAs.

Seems a very simple procedure that I want to carry out, but obviously not the case.

It is. However, it creates an additional cost and level of work. Some providers, particularly on their budget product or where they have limited distribution, don't want to do that work. It also carries additional risk, as they are required to conduct AML checks on the third-party payer. That is not quite as easy as the pension holder, as they have to get permission from the third party payer. Hence more systems and software and controls to handle that.

LHW99

Interactive Investor also allows 3rd party contributions, but they may still want a paper form each time.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/6661875/third-party-pension-contribution-to-daughter

If you are worried about how your gift will be used then I wouldn't be making it. I regularly gift to my nieces and I know that some of the money goes into JISAs for their kids and some gets spent on other things for the kids like mountain bikes and trips to the theatre. I let my nieces decide how best to use the money.

Marcon

Surely there's an easy way to deal with this? You say you want to make regular contributions, so simply give her individual contributions but make the 'next' contribution conditional on your having evidence that she's paid the last one into her pension.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/81943070#Comment_81943070

Yup - exactly how I understand it. My (non-earning) misses is a full time carer for our son and I contribute via DD 200/month to her pension with HL - so as not to exceed the limit of 2880/ann.

cloud_dog

We pay via direct debit (from our account) into our childs SIPP with Fidelity.

This was set up originally before they became an 'adult'; unsure if that makes any difference, but it is designated in the SIPP as a 3rd party contribution.

artyboy

https://forums.moneysavingexpert.com/discussion/comment/81943333#Comment_81943333

Families eh…..?