PPRuNe Forums - View Single Post - Fixed Protection Pension
View Single Post
Old 21st Mar 2012, 17:02
  #5 (permalink)  
Al R
 
Join Date: Jul 2007
Location: @exRAF_Al
Posts: 3,297
Likes: 0
Received 0 Likes on 0 Posts
Certainly a non working partner should have savings in her name, and if appropriate, a Form R85 should be signed and given to the bank.

http://www.hmrc.gov.uk/forms/r85.pdf

A non working partner should consider having their own ISA of course, and personal pension to make best use of up to tax relief. For a non tax paying partner, £2,880 per annum may be contributed into a pension, made up by HMRC to £3,600 gross. A partner who works and makes, say, £10,000 per annum can save (with spousal help possibly) up to £10,000 gross (£8000 net).

One elegant solution would see someone getting max tax relief on the way 'in' to a pension plan and saving enough to be able to draw just under, or as close to the personal tax allowance on the way 'back'. So - as much tax uplift as you can from the state and £9200+ each year (in your partner's name) free of tax coming back at you both the other way.
Al R is offline