If a wife wishes to make a transfer of her personal allowance to her husband, who's income is £14,000 and she also made a personal pension contribution in the tax year of £3,500, would this have any effect on the transfer or tax relief to either spouse?
Replies (4)
Please login or register to join the discussion.
She’s looking to make a pension contribution directly into her private personal pension of up to £4K and taxable income will be £14k for this tax year.
Thanks
That will almost certainly be a relief at source contribution and have no bearing on her taxable income.
The impact on her will depend on how her taxable income is split between earnings/pension, interest and dividends.
Applying could leave her with a reduced Personal Allowance but with little or no tax to pay.
She needs to be aware of Gift Aid clawback (if any donations have been made) and be very careful if she deferred State Pension pre April 2016 and plans on taking it in the same tax year.