Married couple but one large pension and one tiny one.
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What do you mean by income tax bands?
UK tax bands are 20%, 40% etc.
Do you mean taking and somehow sharing the “up to 25%” Tax Free Lump Sum (TFLS) on a DC pension?If so, I’m pretty sure the answer is “no” - your pension belongs to you, it cannot be shared with a spouse/partner.
One thing worth knowing (separately!) is that you can contribute £2,880 p.a. to a pension even if you earn nothing, & the Government up the contribution to make it £3,600. Can be a handy way to add a bit to a lower- or non-earning partner…
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At one point I did semi-seriously consider getting divorced and then re-married to split my pension.
However, once the state pension is taken into account, that covers most of my wife's tax free amount, possibly all of it the way things are headed. So the only real concern I have is how much of my SIPP I'll pay 40% on - and moving that to my wife to 'only' pay 20% didn't seem enough for drastic action.
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Car Bon, do not forget that a non PAYE payer can claim upto an extra £5k 'savings interest', add that to £12570 and the stock £1k and it offers a possible £18570 before any tax is due. I'm working on moving money into 'er indoors name for just this reason!
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@ferret50 already done - all our cash savings are in my wife's name.
I was also fortunate enough to inherit some money in a SIPP from my late father and the trustees agreed to change the beneficiary to be my wife rather than me. With an inherited SIPP you can draw the funds immediately, so that's using her nil tax band from now until state pension age
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Jammy bugger!