| Pension question [message #384905] |
Fr, 05 Mai 2006 12:21 |
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Is it possible to gift ones pension fund to ones wife? I have been told by a
pension provider that this isn't possible because of Inland Revenue rules.
Is that true, and if so what possible reason could there be for the ruling?
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| Re: Pension question [message #384907 ] |
Fr, 05 Mai 2006 12:26 |
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Yes it is true. It not not possible to assign or 'give away' pension
benefits.
The clue is 'Inland Revenue' rules - i.e. tax reasons.
You have been given tax relief on your pension contributions, and the
purpose of the pension is to provide you with retirement benefits when
you come to retire.
Because you got tax relief on the way in, the Revenue want to damn well
make sure that they get the tax back when it comes out of the other end
- i.e. as taxable income. That is the main reason why there are so many
restrictions around pensions as a whole.
Aside from this, why would you want to give your wife a pension fund ?
What purpose are you trying to achieve ?
Rgds
Neil.
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| Re: Pension question [message #384913 ] |
Fr, 05 Mai 2006 13:31 |
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Your question suggests that there would be no advantage in my doing this and
that perhaps a joint annuity would achieve the same result.
<neil [at] invidion.co.uk> wrote in message
news:1146824811.475336.226150 [at] j33g2000cwa.googlegroups.com...
| Yes it is true. It not not possible to assign or 'give away' pension
| benefits.
|
| The clue is 'Inland Revenue' rules - i.e. tax reasons.
|
| You have been given tax relief on your pension contributions, and the
| purpose of the pension is to provide you with retirement benefits when
| you come to retire.
|
| Because you got tax relief on the way in, the Revenue want to damn well
| make sure that they get the tax back when it comes out of the other end
| - i.e. as taxable income. That is the main reason why there are so many
| restrictions around pensions as a whole.
|
| Aside from this, why would you want to give your wife a pension fund ?
| What purpose are you trying to achieve ?
|
| Rgds
| Neil.
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| Re: Pension question [message #384915 ] |
Fr, 05 Mai 2006 13:42 |
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Bitstring <%GF6g.286$483.46 [at] newsfe6-gui.ntli.net>, from the wonderful
person Stickems. <Stickems.? [at] last.invalid> said
>Is it possible to gift ones pension fund to ones wife? I have been told by a
>pension provider that this isn't possible because of Inland Revenue rules.
>Is that true, and if so what possible reason could there be for the ruling?
Presumably because it would permit some level of tax evasion if you
stuck money in with 40% tax rebate and you wife could take it out again
as a non taxpayer (especially if she's a lot older than you). However it
does seem daft, since if you =divorce= her she can get her hands on
some/half/all of your fund as part of the settlement .. but then IR
rules passeth all understanding, especially where pensions are/were
concerned.
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
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| Re: Pension question [message #384919 ] |
Fr, 05 Mai 2006 14:49 |
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>>Your question suggests that there would be no advantage in my doing this and
>>that perhaps a joint annuity would achieve the same result.
Still not sure what you are trying to achieve ... Are you planning on
actually taking the benefits soon in the form of a pension, or is this
some way in the future ?
If you are taking the benefits, you may be able to use your wife's tax
allowances when it comes to investing the Tax-Free Lump Sum that you
could take from a pension plan.
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| Re: Pension question [message #384933 ] |
Fr, 05 Mai 2006 17:11 |
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Soon. How does taking the wife's tax allowances work?
<neil [at] invidion.co.uk> wrote in message
news:1146833361.923424.163940 [at] i39g2000cwa.googlegroups.com...
| >>Your question suggests that there would be no advantage in my doing this
and
| >>that perhaps a joint annuity would achieve the same result.
|
| Still not sure what you are trying to achieve ... Are you planning on
| actually taking the benefits soon in the form of a pension, or is this
| some way in the future ?
|
| If you are taking the benefits, you may be able to use your wife's tax
| allowances when it comes to investing the Tax-Free Lump Sum that you
| could take from a pension plan.
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| Re: Pension question [message #384938 ] |
Fr, 05 Mai 2006 17:21 |
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Well, you won't get that much mileage, but you could such things as:
* Use her ISA allowances, by putting investing =A37,000 on her behalf in
this tax-year
* If she is a non-taxpayer, let her keep money on deposit in her name.
* If you are a higher-rate taxpayer, and she is'nt, take out other
investments in her name.
You get the drift.
There is probably marginal tax-mileage in this, unless you have big
sums to invest.
Rgds
Neil.
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