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Using spouse's Pension Allowance?
robmbaker
Posts: 1 Newbie
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
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
0
Comments
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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/0 -
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.0 -
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.0
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