Opting out of Pension/s - LTA.
Discussion
Question for the experts - as the title I am trying to decide whether to opt out and take advantage of the new LTA seeing as my pot/s are around that amount now or estimated to be in excess of.
My company will pay me an allowance equivalent to their contributions which obviously I will then have to pay tax on etc.
However that still leaves me x per month so could start a SIPP or similar for the Mrs ( to obtain tax relief ) although she only has unearned income so I guess that might limit that idea ?
Any words of wisdom ?
My company will pay me an allowance equivalent to their contributions which obviously I will then have to pay tax on etc.
However that still leaves me x per month so could start a SIPP or similar for the Mrs ( to obtain tax relief ) although she only has unearned income so I guess that might limit that idea ?
Any words of wisdom ?
Alscar,
In principle, yes. Don't bother with a SIPP for her though, a cheap personal pension will allow her to maximise her £2880 (net) annual allowance more cheaply. If you want to do it yourself but would still appreciate a quick info steer, feel free to drop me a line. There are one or two pension trust products still around which allow the growth on your pension fund to be allocated to her - great when she starts drawing income - more tax efficiently.
There are other ways you can mitigate the tax you have to pay don't forget, using other wrappers (if they are suitable for you of course).
In principle, yes. Don't bother with a SIPP for her though, a cheap personal pension will allow her to maximise her £2880 (net) annual allowance more cheaply. If you want to do it yourself but would still appreciate a quick info steer, feel free to drop me a line. There are one or two pension trust products still around which allow the growth on your pension fund to be allocated to her - great when she starts drawing income - more tax efficiently.
There are other ways you can mitigate the tax you have to pay don't forget, using other wrappers (if they are suitable for you of course).
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