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Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a 2014/2015 CGT gain which I have split between

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Hi. I have a 2014/2015 CGT gain which I have split between my wife and I. Question is whether I can use some of her gain by buying into a pension for her? She has not worked for five years so has not paid into a pension during this time.
Customer: replied 2 years ago.
Dates may be important? The CGT liability arose on sale of shares of a company in which i was an employee as part of a business sale completed on 2nd April 2015. I didn't receive the income from the sale of the shares until mid April 2015. I believe I still have to account for the transaction as a 2014/15 event.
Hi Thanks for your question, I am Sam and I am one of the UK Tax Experts on Just Answer and previously worked for HMRc. and now own my own accountancy business. You can use her gain to buy into a pension which will receive tax relief at source (20%) if she has other earned income to substantiate the one off payment to get full tax relief. And therefore the fact that the pension payment will be made in 2015/2106 may also then have an impact to any relevant income for that year.If however, the gain is her only income (so there is no other relevant or earned income) then an amount up to £2880 will receive pension relief on it. (And you advise that the gain arose due to shares you held in employment so I assume the shares were in joint names? If not then the gain will be considered on just you) Thanks Sam
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Customer: replied 2 years ago.
Wife has no other earned income. So I take it she cannot use previous years and current year annual allowances for transferring the gain into a pension?