My wife is a Director of my business and, in the interests of tax efficiency, want to make a £10k to £20k payment into a new pension for her before our financial year-end on Dec 31st.
At present she has a 401(k), a UK local government pension, and an amount just under £1k that has been loitering in a L&G Stakeholder Pension for a number of years. IIRC the last time I checked L&G said that it was 'too small' to transfer at the time (although I have forgotten the context). I currently have a SIPP with II although plan to move to Vanguard SIPP when it is available.
My question is, should I:
1. Open my wife a SIPP with say II (or another provider?) on the basis that it will stay small and/or be moved to Vanguard if they allow small pots.
2. Something else (e.g. get it into the L&G stakeholder pension then transfer the lot elsewhere in slower time)
It's only going to be a small pot so I want it simple and without excessive charges.
Apologies for poor phrasing but hopefully it makes sense...
N.
Got a credit card? use our Credit Card & Finance Calculators
Thanks to eyeball08,Wondergirly,bofh,johnstevens77,Bhoddhisatva, for Donating to support the site
Use a SIPP for this?
-
- Lemon Slice
- Posts: 628
- Joined: January 27th, 2017, 9:31 pm
- Has thanked: 1152 times
- Been thanked: 283 times
-
- Posts: 25
- Joined: November 24th, 2016, 8:54 pm
- Has thanked: 60 times
- Been thanked: 3 times
Re: Use a SIPP for this?
Hi,
You say your wife has a 401K that implies they have USA Citizenship.
You may thus find many UK providers do not wish to have her as a customer due to the USA Govt.'s onerous overseas income and taxation regime.
HTH
You say your wife has a 401K that implies they have USA Citizenship.
You may thus find many UK providers do not wish to have her as a customer due to the USA Govt.'s onerous overseas income and taxation regime.
HTH
-
- Lemon Slice
- Posts: 628
- Joined: January 27th, 2017, 9:31 pm
- Has thanked: 1152 times
- Been thanked: 283 times
Re: Use a SIPP for this?
deadeyedjacks wrote:Hi,
You say your wife has a 401K that implies they have USA Citizenship.
You may thus find many UK providers do not wish to have her as a customer due to the USA Govt.'s onerous overseas income and taxation regime.
HTH
@deadeyedjacks. Quite right she's American but has joint citizenship. That's a very useful reply - many thanks!
EDIT: there is information on that point here https://www.greenbacktaxservices.com/bl ... -expat-uk/ in case others discover this thread. Thanks again @deadeyedjacks.
-
- Posts: 25
- Joined: November 24th, 2016, 8:54 pm
- Has thanked: 60 times
- Been thanked: 3 times
Re: Use a SIPP for this?
It also seems you'll have to be very careful regarding chosing the most appropriate type of investments within the SIPP to meet both US & UK reporting and taxation requirements.
https://thunfinancial.com/home/american ... p-article/
Seems like a minefield ! Best of luck !
https://thunfinancial.com/home/american ... p-article/
Seems like a minefield ! Best of luck !
Return to “Pensions - Practical Problems”
Who is online
Users browsing this forum: No registered users and 29 guests