Pension Protection Fund

A question about : Pension Protection Fund

Hi

2 questions.

1. I am in full time employment and also being paid a small pension of circa Ј600pm (by PPF) this is all being taxed @ 20%, could I transfer this to my wife's name and use her tax code as she is not working?

2. Or with the new rules coming in April would I be able to take any money out of this and re-invest.

Regards

Best answers:

• 1. No - it is not transferable (unless say you got divorced and she was awarded part of it...)
  2. No - the new rules are for DC pensions - you can transfer from DB to DC but only before you start taking the benefits
• Nope. Nope.
  But you could contribute Ј240 p.m. to a pension for your wife. (The taxman makes that up to Ј300.) That would leave you Ј240 p.m. to contribute to a pension of your own. In a way then you'd be using the PPF money to build up investments under your own control.
• Oh yes, the PPF set up after Brown's disastrous tax raid in 1997 caused many private company pension schemes to fail.
• Thank you both, it was worth a try
• Actually, in a couple f years, you will be able to use up to 1K of your spouse's unused personal allowance- that will help.
  But the best thing to do, is to do as said above and use the old pension to make new pension contributions that you (and she) can take later on using the new rules.
  Obv if you take these new pensions later when you have stopped working, you will have personal allowance to spare that will mean you pay no tax on the 600/m and less tax on the new pension as well.