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Where Taxpayers and Advisers Meet

Gift to a spouse for their SIPP

MinnieM
Posts:1
Joined:Fri Aug 07, 2015 1:02 pm
Gift to a spouse for their SIPP

Postby MinnieM » Fri Aug 07, 2015 1:09 pm

I am just about to retire on ill-health grounds and and due a lump sum. My husband reached 55 this year and took his cash free lump sum but no further money from his SIPP this April. Firstly am I allowed to gift him a lump sum for him to put into his SIPP this year? Secondly if not, since we are reducing our outgoings ie paying off our mortgage etc we might have some spare money each month would it be ok for him to be seen to put this into his account monthly instead? :?:

LozaACCS
Posts:1504
Joined:Wed Aug 06, 2008 3:55 pm

Re: Gift to a spouse for their SIPP

Postby LozaACCS » Sat Aug 08, 2015 5:41 pm

The pension recycling rules include indirect contributions and apply where (very broadly) the tax free cash exceeds £7,500 and the additional contributions exceed 30% of the tax free cash.
If they apply the resulting unauthorised payments charge can be as much as 70%, you should seek formal advice before proceeding


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