Any IFAs out there?
By my reading of FA 2004, in order for a registered pension scheme to accept a contribution from an individual, the individual must:
- be UK resident, and
- be under 75, and
- have "relevant earnings" (of any amount > £0) chargeable to income tax (which might then be covered by the personal allowance).
So if a child is, say, entitled to a £1 share of the profits from a furnished holiday let, then a contribution of £3,600 can be made "by or on behalf of" that child. The pension fund can accumulate and grow tax-free until the child retires or dies.
Is that right?
Let's call the child Sam and assume he's currently 3.
Sam's parents have money to burn and want to make the best possible provision for Sam. He has a Child Trust Fund or Child ISA to which they make the maximum annual contribution (of £3,600?).
Does a £3,600 pension contribution make any sense?
If it does, what would happen to the pension fund if Sam died in his minority? and what would happens to it if he died in his majority but without dependents?
- Any Scottish members out there? 5,930 208
- Trademark Fun 96 5
- What's your best practice shortcut or 'hack'? 1,456 38
- Can I strike off a company by filing DS01 online? 122 2
- VAT Fuel Scale Charge for Fuel on Private/Personal Car 156 3
- Subsistence - god I hate it! 634 14
- How to issue a loan correctly? 174 2
- Would Director's dividends on non-voting C shares risk being classed as "earnings" for NIC purposes? 151 1
- Recycle old study books 349 9
- Share for share exchange 134 3
- Wind turbines 130 1
- Looking for a qualified accountant 509 2
- Locum Doctor claiming costs for Home Office 181 2
- FL Memo - Any Good 402 7
- VAT claim 353 6
- How to reclaim input tax from mixed use redevelopment? 161 6
- Am I allowed Rent A Room Relief? 401 9
- State Pension 1,209 10
- Late Corporation tax return 355 7
- The iIns and outs of VAT 378 6
- Raiders of the Lost Tax File 1,057
- Chartered Accountant in County Down N.Ireland 339
- IPP (International Pension Plan) income 287
- National Insurance 241
- valuation of intangible asset FRS10 and FRS20 222
- Joint construction arrangement CIS and VAT 221
- Cass 5 FCA Client Money Software recomendation 205
- Payments on account coded out?? 201
- Non Resident 159
- Franchise income and costs 139