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Where Taxpayers and Advisers Meet

SIPP drawdown

Posts: 20
Joined: Thu Nov 17, 2011 8:01 pm

SIPP drawdown

Postby greenjersey » Tue Nov 20, 2018 2:11 pm

Hi, I used to take drawdown from my H & L SIPP but when the rules changed I stopped as I figured I could leave my SIPP to my daughter when I die (I'm 75! )as I understand it is outside my estate for I.T. purposes. However i wonder if we are missing a tax advantage. Could I restart drawdown, it is clearly surplus income, and pay the monthly amount into my daughter's SIPP so she can obtain the 20% tax upload? Any thoughts much appreciated.

Posts: 396
Joined: Mon Feb 13, 2017 10:09 am

Re: SIPP drawdown

Postby someone » Tue Nov 20, 2018 2:38 pm

You cannot pay in and get the tax advantage. But your daughter can pay in from her own taxed income (which doesn't have to be 'surplus' - she can use gifts from you to subsidise her lifestyle.)

Personally, I'd chose an ISA over a pension if I were a basic rate taxpayer. YMMV.

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