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Getting divorced to maximise Tax free allowance

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    swindiff wrote: »
    the pension is split 50/50 £12k each meaning that you both pay tax on £150, £30 each.

    Pension wouldn't be split. Your ex would receive a lump sum to buy a pension with.
  • Shedman
    Shedman Posts: 1,613 Forumite
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    Ganga wrote: »
    What happens if your wife runs off with the gardener and half your pension:rotfl::rotfl::rotfl:

    Be more concerned about losing a good Gardener :rotfl:
  • Alibert
    Alibert Posts: 113 Forumite
    On a serious note I don't see how it could be illegal, or how it could fall foul of anti avoidance .. it's very common for people to get married in order to enjoy the IHT advantages. Getting divorced for the LTA advantage would seem completely equivalent
  • michaels
    michaels Posts: 29,465 Forumite
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    Thrugelmir wrote: »
    Pension wouldn't be split. Your ex would receive a lump sum to buy a pension with.

    Tax free?

    Would she have to buy a pension? How could she invest so much in a pension in 1 year?
    I think....
  • Alibert
    Alibert Posts: 113 Forumite
    My understanding is that it can get split .. money gets taken out of one fund into the other
    https://www.moneyadviceservice.org.uk/en/articles/dividing-pensions-on-divorce-or-dissolution
  • Tom99
    Tom99 Posts: 5,371 Forumite
    1,000 Posts Second Anniversary
    Thrugelmir wrote: »
    Pension wouldn't be split. Your ex would receive a lump sum to buy a pension with.


    [FONT=Verdana, sans-serif]Which can be done on the same day and if you are lucky will be greater than the amount of pension pa given up, another win.[/FONT]
  • Marcon
    Marcon Posts: 15,637 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    michaels wrote: »
    Tax free?

    Would she have to buy a pension? How could she invest so much in a pension in 1 year?

    She wouldn't receive it - if a pension sharing order is made, she could nominate another registered pension scheme to receive a transfer.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
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