Pensions - Income tax and standard rate band

[towger111]

I am helping my elderly parents-in-law with their tax.


Briefly, he has a an occupational pension, some other dividend income, and SW contributory pension.
She has SW pension only, paid sepertately to her own bank account.
He is self-assessed and submits a form 11, under joint-assessment.

His TFA cert shows the reduction in his standard rate tax band due to coding of his SW pension, but as he submits a form 11 this all squares off in the end, and in effect in ROS he does ( and should ? ) benefit from his full standard rate band ?


Secondly, should the standard rate band be increased from the standard 41,800 by the amount of his wife's "income" from her pension ? ROS does give this increase, but I have my doubts as to the validity of that ? Should the standard rate band only be increased due to income coming from employment and not from SW pension ?

Thanks a lot

 

[Joe_90]

Yes the €41,800 should balance itself out at the year when filing the Form 11.

You need to establish what her pension actually is. Is it her contributory pension, her non contributory or the depend spouse portion of his contributory pension.

If its her contributory pension or her non contributory then it is her income and the standard rate band is increased. If it is the depend spouse portion of his contributory pension then it's his income (albeit paid to her) and the increase is not due.

 

[towger111]

Yes the €41,800 should balance itself out at the year when filing the Form 11.

You need to establish what her pension actually is. Is it her contributory pension, her non contributory or the depend spouse portion of his contributory pension.

If its her contributory pension or her non contributory then it is her income and the standard rate band is increased. If it is the depend spouse portion of his contributory pension then it's his income (albeit paid to her) and the increase is not due.

Thanks ... very clear answer. I just need to establish which type of pension it is.