Have you thought about making a £3,600 pension contribution for a relative?
- 3rd November 2017
Who could benefit?
What are the benefits?
Encourages savings and cannot currently be accessed to age 55
Tax relief – for a contribution of £2,880 the tax relief would be £720 making the gross contribution £3,600, this equates to 20%
For inheritance tax purposes, the contributions could potentially be outside of your Estate
This can be completed each tax-year and for each relative
If the relative earns more than £3,600 then you can pay up to their earnings minus any contributions already paid
With Cash ISA interest rates so poor, this is a great way to effectively make an immediate 20% return, which based on current cash ISA rates would take you over 10 years to make.
If you wish to discuss this in further detail, please get in touch
Written by Dale Regan
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