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I earn more than £40,000 a year . The tax man hits me at 40% tax on everything over £38000. I also have a pension in addition though not big yeilds

by toto82 18 March 2010 |

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15000 a year and is being also taxed at 40% can I offset or transfer this to the wife who is not working??

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MikeGG1 posted
Is your pension an actual annuity or an unfunded pension from a pension scheme or is it pension drawdown? Once an actual annuity is in payment, there is not very often anything that you can do to change it. However, the other 2 could be re-arranged. The unfunded payments from a pension scheme could only be changed with the consent of the Trustees.
If you can stop the payments that would be about all you could do. You could re-start it when you retire and perhaps your tax rate would be lower then. You could also change it to a joint life pension which would reduce the amount payable to you but give the same amount to your spouse on your death.
You can't actually transfer a pension to someone else without a pension sharing order on divorce.
The other way to cut your income now would be for you to make substantial pension contributions.
Do you have any investments in your name? If so, they are also on higher rate and should be transferred to your wife. They can be transferred back and forth without any problems.
Mike
Posted on 18 March 2010 | Love 1 love Report
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toto82 posted
I started to receive pension as of 50, 3 years ago believe this is only drawdown. wife would get same amount on my death. Have stoped pension for time being other investments have already been transferred to wife. It seems that no matter what party gets in to goverment they all the same rip of those who want to work and earn a descent living.
Posted on 18 March 2010 | Love 0 loves Report
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manzanilla posted
It seems that no matter what party gets in to goverment they all the
same rip of those who want to work and earn a descent living.
well they have to revenue raise from somewhere. And it doesnt sound as though your wife wants to work...
manzanilla
Posted on 19 March 2010 | Love 0 loves Report
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toto82 posted
More of a case she does work very hard but at home who do you think cleans the house cooks does the washing, ironing weekly shopping sorts out the bills. I think that is something overlooked by you.
Posted on 19 March 2010 | Love 0 loves Report
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manzanilla posted
lol as a single parent I am hardly likely to overlook housework and other domestic tasks.
Posted on 19 March 2010 | Love 0 loves Report

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