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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My wife is a house wife, so she has no income. But had a dividend

Resolved Question:

My wife is a house wife, so she has no income. But had a dividend of £46,489. I understand there is £2200 income tax payable on the last £9780 of this.
Can I put the £9780 in to her pension Gross so the £2200 is not payable?
If so can she still get the tax relief on £3600 in her pension as well?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.
You can put away money into a pension scheme out of earned income. Dividend income is not deemed earned income for pension contribution relief purposes.
She can input a maximum of £3,600 per annum into a pension scheme if she has no earned income, I'm afraid.
I hope this is helpful and answers your question.
Customer: replied 2 years ago.
So even if we don't claim the relief she'd still have to pay the income tax? This is a avoid having to do a tax return more than anything
Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply.

As her income from savings and investments that has been taxed and was £10,000 or more before you paid tax on it, she would have to report this on her tax return.

More information on this can be found here - look at Question 5.

https://www.gov.uk/check-if-you-need-a-tax-return

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.

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