UK Tax Code for Wife

[Pompey Lad 1938]

I would appreciate advice, if anyone has knowledge of the tax my wife will pay on pensions she will receive after my passing.    I have contacted the UK Inland Revenue asking whether she would be taxed on the balance remaining after deduction of personal allowance assuming she would get a personal allowance, or whether she would be taxed on the gross amount.   They replied they cannot advise.

 

My wife has never lived in the UK and does not have a NHS number.  Could she apply for one?

 

I have also contacted the pension providers and they could only refer me to the Inland Revenue.

Edited March 31, 2022 by Pompey Lad 1938

[Chomper Higgot]

Your pension provider will make payments to your wife and when they do so they will notify the HMRC who will then issue a tax code for your wife to your pension provider.

She will receive a personal  allowance regardless of where she lives. (Of course tgat could change).

 

 

Make sure your wife is named in your expression of wishes and that she has an account ready to receive your pension.

 

She’ll probably need someone to help her through the process, so a friend or relative who is willing to help and is aware of your pension provisions is a good idea.

 

Also be aware, if there is a significant age difference (normally anything over 7 years) between you and your wife this will result in a reduction of the pension she is paid.

 

On the upside if you have dependent children, they may be entitled to a pension,

 

I suggest you compile a file of relevant documents, pension records, addresses, contact details, copies of marriage certificate, birth certificates, a copy of applicable pension rules and a copy of your expression of wishes.

 

Seal these in an envelope where your wife can find them and explain these to whoever it is will help your wife in the process.

 

 

 

 

Edited April 3, 2022 by Chomper Higgot

[theoldgit]

38 minutes ago, Chomper Higgot said:

Also be aware, if there is a significant age difference (normally anything over 7 years) between you and your wife this will result in a reduction of the pension she is paid.

 

This isn't set in stone and can vary from different Pension Providers, or even an individuals status within the scheme.

 

It's certainly something worth checking, this is the response I got from the Civil Service Pension Administrators last year:

An age difference reduction to widows pensions is only applied to member's who are in the Premium/Nuvos/Alpha sections of the pension scheme. The rules of these sections of the scheme state a reduction must be applied if the spouse is over 12 years younger than the member. However as you are in the classic section of the scheme no such ruling applies and a spouse is entitled to the full widows pension regardless of age difference.

 

The advice to enlist the help of a friend or family member to assist when it's time to claim is really good advice and something we did a few years ago, enlisting a close friend who has recently retired from the Civil Service and my neice who is a current Civil Servant, we keep them supplied with all new comminications and a they both have a letter entitling them to act on my wifes behalf.

 

I wasn't aware that the issue of a tax number was automatic, it was certainly something I was concerned about, with the current personal allowance that would have cost my wife/widow £2,500 a year, and like the OP I got the same response from my pension provider and HMRC.

[Pumpuynarak]

On 3/31/2022 at 11:00 PM, Pompey Lad 1938 said:

I would appreciate advice, if anyone has knowledge of the tax my wife will pay on pensions she will receive after my passing.    I have contacted the UK Inland Revenue asking whether she would be taxed on the balance remaining after deduction of personal allowance assuming she would get a personal allowance, or whether she would be taxed on the gross amount.   They replied they cannot advise.

How ridiculous...........????