Using spouse's Pension Allowance?

robmbaker · 14 June 2018 at 12:17PM

I stumbled across an article today (while looking for something else, actually), which seems to suggest that one can use their partner's 'pension allowance' (lifetime or annual contribution?). It was on the Telegraph website, if you search for: special-reports/can-my-husband-get-extra-tax-relief-by-paying-into-my-pension (I can't post the link because I'm a new user!)

Given that it's from a reputable source, I thought I'd look into it, but NOWHERE else on the internet seems to reference such a benefit. Anyone have any idea what the article is referring to, or is it just plain wrong!?

TIA

Daniel54 · 14 June 2018 at 12:32PM

The article is linked to below.It confirms that if one spouse ( in this case the husband)has used their £40k annual allowance he can still contribute to his wife!!!8217;s pension,but any tax relief will be based on her earnings,not his.

https://www.telegraph.co.uk/money/special-reports/can-my-husband-get-extra-tax-relief-by-paying-into-my-pension/

Dox · 14 June 2018 at 12:36PM

TBC15 wrote: »

MSE have been banging the drum on this one for quite some time.

https://www.moneysavingexpert.com/news/family/2015/02/couples-now-able-to-register-to-shift-unused-tax-allowance-between-spouses

and the information is amazingly easy to find.

It may be amazingly easy to find, but OP is referring to something else - pensions.

OP - you can pay into someone else's pension and, if they get relief at source on pension contributions, the pension provider claims basic rate tax relief and adds it to their 'pot'. If you are a higher rate taxpayer, you can't claim any further tax relief because you haven't made the contribution to your own pension.

The maximum you can pay is linked to the earnings of the person to whose pot you are contributing. A maximum contribution of £3,600 (£2,880 net) in any one tax year can be made regardless of whether the recipient is earning or not.

Asghar · 14 June 2018 at 12:38PM

There is no such benefit/allowance and besides, you did not even bother to read the article.

The article you mention is over two years old and starts with the question "Can my husband get extra tax relief by paying into my pension?"
The first sentence of the answer is "Unfortunately not."

You can give your spouse money to pay into their pension if they are unable to, up to their gross earnings or £3600 including tax relief if they are not working.
The tax relief and pension will be theirs.

Using spouse's Pension Allowance?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free