I am busy sorting out the estate of my father in law who was in receipt of an Irish contributory state pension which included an increase for a qualified adult for my mother in law.
They are UK residents so subject to income tax on this – and unlike Ireland where I believe there is a joint couples tax free allowance they had separate tax free personal allowances. This also has a modest inheritance tax calculation effect.
Does anyone know if the increase for a qualified adult element of the pension my FIL received is legally that of the contributory pension recipient (my father in law) or of the dependent spouse (my mother in law) for tax purposes? The payments were made as weekly into their joint account. He was a UK basic rate taxpayer – her income was well below her tax allowance.
They are UK residents so subject to income tax on this – and unlike Ireland where I believe there is a joint couples tax free allowance they had separate tax free personal allowances. This also has a modest inheritance tax calculation effect.
Does anyone know if the increase for a qualified adult element of the pension my FIL received is legally that of the contributory pension recipient (my father in law) or of the dependent spouse (my mother in law) for tax purposes? The payments were made as weekly into their joint account. He was a UK basic rate taxpayer – her income was well below her tax allowance.