Junior SIPP Government top-up (tax relief) age 17/18
Discussion
My question is what happens during the aged 17 / 18 year? You can pay in up to £2,880 per year, which the government will top up to £3,600 through tax relief, up to age 18.
So if child is 17 and turns 18 in say August, do you need to make sure you’ve paid the entire 2880 before their 18th birthday (in August, in this example)? Rather than saying say paying monthly through the course of the financial year, which would mean some contributions occurs after their 18th birthday.
(Ie to get the max relief possible).
So if child is 17 and turns 18 in say August, do you need to make sure you’ve paid the entire 2880 before their 18th birthday (in August, in this example)? Rather than saying say paying monthly through the course of the financial year, which would mean some contributions occurs after their 18th birthday.
(Ie to get the max relief possible).
Interesting. I ve been paying Into my daughter s SIPP for 15 years . She is now 19. I m still paying into the SIPP and getting the basic tax relief. She does have a part time job but doesn t pay tax on the income due to it being so low.
Was something supposed to happen when she reached 18!? Didn t even think about it until I saw your post!
I was managing her “in trust “stocks and shares account but the ISA, stocks and shares account and SIPP has now been transferred to her although I make the investment choices, she executes them.
Was something supposed to happen when she reached 18!? Didn t even think about it until I saw your post!
I was managing her “in trust “stocks and shares account but the ISA, stocks and shares account and SIPP has now been transferred to her although I make the investment choices, she executes them.
edit:
Yes, a third party can contribute to a Self-Invested Personal Pension (SIPP) on behalf of the member, typically a family member or another individual. However, the contributions are treated as if the member made them, and tax relief is based on the member's earnings, not the contributor's
Which kind of answers my questions then, as the young person in question will not be earning thus will still be eligible for full tax relief (I think!) even after they turn 18.
Yes, a third party can contribute to a Self-Invested Personal Pension (SIPP) on behalf of the member, typically a family member or another individual. However, the contributions are treated as if the member made them, and tax relief is based on the member's earnings, not the contributor's
Which kind of answers my questions then, as the young person in question will not be earning thus will still be eligible for full tax relief (I think!) even after they turn 18.
Edited by CoolHands on Sunday 25th January 14:36
CoolHands said:
edit:
Yes, a third party can contribute to a Self-Invested Personal Pension (SIPP) on behalf of the member, typically a family member or another individual. However, the contributions are treated as if the member made them, and tax relief is based on the member's earnings, not the contributor's
Which kind of answers my questions then, as the young person in question will not be earning thus will still be eligible for full tax relief (I think!) even after they turn 18.
have been thinking to help start my son's pension by taking more dividends... if you take the gross income and include the 20% uplift he'll get, it reduces the actual take of the dividend from 33 to around 17%Yes, a third party can contribute to a Self-Invested Personal Pension (SIPP) on behalf of the member, typically a family member or another individual. However, the contributions are treated as if the member made them, and tax relief is based on the member's earnings, not the contributor's
Which kind of answers my questions then, as the young person in question will not be earning thus will still be eligible for full tax relief (I think!) even after they turn 18.
Edited by CoolHands on Sunday 25th January 14:36
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