Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Pension transfer

30 September 2014
Issue: 4471 / Categories: Forum & Feedback , Investments , Pensions

Can a retirement pot be assigned to a spouse or civil partner to reduce tax?

In a few months’ time one of my clients will become eligible to a pension. He is a higher-rate taxpayer but his wife only has some investment income that is covered by her personal allowances.

While discussing his 2013/14 tax return we considered future liabilities and the client asked whether he could transfer the pension to his wife to reduce the tax liability.

The obvious answer seemed to be “no” but ITEPA 2003 s 579C states: “The person liable for any tax charged under this Part is the person receiving or entitled to the pension under the registered pension scheme.”

Can he simply arrange for the pension to be paid into his wife’s bank account? Would it make any difference if they were not married? I would be grateful for any advice because this could make a substantial difference to his tax liability.

Query 18...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon