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  • FIRST POST
    • L198913
    • By L198913 15th Jan 20, 1:31 PM
    • 3Posts
    • 0Thanks
    L198913
    Sharing a Pension
    • #1
    • 15th Jan 20, 1:31 PM
    Sharing a Pension 15th Jan 20 at 1:31 PM
    My partner and I have lived together for more than 10 years and are both retired. We both receive a government pension but my partner also receives a private pension and has to pay tax on this. Is there any way that the remainder of my allowance can be offset against his pension to reduce the tax paid?
Page 1
    • cobson
    • By cobson 15th Jan 20, 1:39 PM
    • 62 Posts
    • 65 Thanks
    cobson
    • #2
    • 15th Jan 20, 1:39 PM
    • #2
    • 15th Jan 20, 1:39 PM
    If you were married or in a civil partnership then this would apply:

    https://www.gov.uk/marriage-allowance
    • L198913
    • By L198913 15th Jan 20, 1:48 PM
    • 3 Posts
    • 0 Thanks
    L198913
    • #3
    • 15th Jan 20, 1:48 PM
    • #3
    • 15th Jan 20, 1:48 PM
    Thanks for quick reply.

    We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?
    • cfw1994
    • By cfw1994 15th Jan 20, 1:56 PM
    • 577 Posts
    • 541 Thanks
    cfw1994
    • #4
    • 15th Jan 20, 1:56 PM
    • #4
    • 15th Jan 20, 1:56 PM
    I'm no expert, but I would suggest the answer will certainly be "no" - pensions belong to an individual.
    • JoeCrystal
    • By JoeCrystal 15th Jan 20, 1:59 PM
    • 2,096 Posts
    • 1,502 Thanks
    JoeCrystal
    • #5
    • 15th Jan 20, 1:59 PM
    • #5
    • 15th Jan 20, 1:59 PM
    Thanks for quick reply.

    We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?
    Originally posted by L198913
    No, absolutely not. So in order to take advantage, you need to get married or enter a civil partnership.
    • nigelbb
    • By nigelbb 15th Jan 20, 2:59 PM
    • 2,791 Posts
    • 3,533 Thanks
    nigelbb
    • #6
    • 15th Jan 20, 2:59 PM
    • #6
    • 15th Jan 20, 2:59 PM
    No, absolutely not. So in order to take advantage, you need to get married or enter a civil partnership.
    Originally posted by JoeCrystal
    The UK marriage allowance is worth at most 250 & only applies to basic rate tax payers. In France the system is far more generous to couples & families as the total income is effectively spread over two whole personal allowances for a couple so is especially advantageous if there is a big disparity in income. Dependent children are counted too so if you have two kids then effectively the total family income is spread over three personal allowances.
    • DairyQueen
    • By DairyQueen 15th Jan 20, 11:22 PM
    • 1,080 Posts
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    DairyQueen
    • #7
    • 15th Jan 20, 11:22 PM
    • #7
    • 15th Jan 20, 11:22 PM
    Thanks for quick reply.

    We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?
    Originally posted by L198913
    The only way to receive any direct benefit from another person's pension (whilst they are living) is to be their spouse and then divorce. Courts have the power to make orders to transfer pension assets (or earmark benefits directly to the ex spouse) on divorce.

    I would not recommend this as a tax-saving strategy.

    Did you consider asking your OH's former employer to pay you a portion of their salary before they retired? Same principle.
    • cloud_dog
    • By cloud_dog 16th Jan 20, 8:51 AM
    • 4,742 Posts
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    cloud_dog
    • #8
    • 16th Jan 20, 8:51 AM
    • #8
    • 16th Jan 20, 8:51 AM
    OP, if the private pension is a older style defined benefits/final salary scheme you may also want to investigate your standing re the pension should your partner precede you.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • atush
    • By atush 16th Jan 20, 11:07 PM
    • 18,101 Posts
    • 11,515 Thanks
    atush
    • #9
    • 16th Jan 20, 11:07 PM
    • #9
    • 16th Jan 20, 11:07 PM
    Thanks for quick reply.

    We are not married or in a civil partnership. Is it possible to ask the Pension Company to pay me a portion of the pension direct, therefore relinquishing it of paying tax on it?
    Originally posted by L198913
    No.

    If you want the tax perks that come with being married or CP, the get there.

    There are also inheritance issues with getting some pensions if not married tax free, or any survivor benefits.
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