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  • FIRST POST
    • Gatser
    • By Gatser 29th Nov 17, 10:51 PM
    • 578Posts
    • 213Thanks
    Gatser
    Funding (adult) children's pensions
    • #1
    • 29th Nov 17, 10:51 PM
    Funding (adult) children's pensions 29th Nov 17 at 10:51 PM
    Not sure if this is the best area to post this but here goes....


    Is there a "tax efficient" way to help top up our childrens private pensions?
    I wondered about paying a regular sum to them out of our surplus income (so it will not be liable for IHT), then the young un's can pay into their pension themselves and get tax relief.


    Any better suggestions please?
    Many thanks
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is 23k pa)
    My Other NUMBER: ZERO Working Days to SEMI-retirement: Achieved!
Page 1
    • le loup
    • By le loup 30th Nov 17, 8:52 AM
    • 3,807 Posts
    • 3,756 Thanks
    le loup
    • #2
    • 30th Nov 17, 8:52 AM
    • #2
    • 30th Nov 17, 8:52 AM
    I think you have found it.
    • agrinnall
    • By agrinnall 30th Nov 17, 9:30 AM
    • 20,135 Posts
    • 15,847 Thanks
    agrinnall
    • #3
    • 30th Nov 17, 9:30 AM
    • #3
    • 30th Nov 17, 9:30 AM
    Except of course that once you've handed the money over you have no control over what they do with it, so expenditure on wine, women and song may well happen!
    • Keep pedalling
    • By Keep pedalling 30th Nov 17, 9:47 AM
    • 4,991 Posts
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    Keep pedalling
    • #4
    • 30th Nov 17, 9:47 AM
    • #4
    • 30th Nov 17, 9:47 AM
    I think you have found it.
    Originally posted by le loup
    Providing the OP can genuinely fund it from surplus income. Thanks to some misleading info on HMRCs website gifting from income is often a very much misunderstood method of reducing IHT.

    http://forums.moneysavingexpert.com/showthread.php?t=5751038
    • Keep pedalling
    • By Keep pedalling 30th Nov 17, 9:48 AM
    • 4,991 Posts
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    Keep pedalling
    • #5
    • 30th Nov 17, 9:48 AM
    • #5
    • 30th Nov 17, 9:48 AM
    Except of course that once you've handed the money over you have no control over what they do with it, so expenditure on wine, women and song may well happen!
    Originally posted by agrinnall
    And the rest they will probably waste
    • Gatser
    • By Gatser 30th Nov 17, 11:05 AM
    • 578 Posts
    • 213 Thanks
    Gatser
    • #6
    • 30th Nov 17, 11:05 AM
    Thank you for responses...
    • #6
    • 30th Nov 17, 11:05 AM
    I am grateful for your feedback.
    I realise the little darlings may have other views on their expenditure priorities but I just want to encourage some going into their pension pots.


    As for Surplus Income, I have detailed spreadsheets showing our income and outgoings over a 30 year period (how sad!) and it is clear we can pay regular allowances out of the surplus.
    (Hoping that will suffice.... ;-)
    THE NUMBER is how much you need to live comfortably: very IMPORTANT as part 1 of Retirement Planning. (Average response to my thread is 23k pa)
    My Other NUMBER: ZERO Working Days to SEMI-retirement: Achieved!
    • xylophone
    • By xylophone 30th Nov 17, 11:33 AM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #7
    • 30th Nov 17, 11:33 AM
    • #7
    • 30th Nov 17, 11:33 AM
    You could make the payments direct to the pensions ( if provided with the details and provider facilitates) and the children will receive the relief.

    You would need to advise your children of the amount you wish to pay so that they can check that their allowances are not exceeded/check on whether they need to claim additional relief/choose investment funds etc.
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