To ask Her Majesty's Government what assessment they have made of the recommendations in the Centre for the Study of Financial Innovation's report The Dependency Trap—are we fit to face the future? that (1) a working partner should be allowed to contribute to a non-working partner's pension fund, and (2) couples should be able to contribute to a joint pension fund if they so wish.
Answered on
24 May 2018
Individuals can make contributions of up £2,880 each year to a personal pension, self-invested personal pension, or stakeholder pension and receive basic rate income tax relief at, currently, 20% or £720 on their contribution. Those contributions can be funded by a working partner.
Regarding the proposal of a joint pension, since 1990, the UK's income tax system has been based on the principle of independent taxation. This provides that each individual is taxed on their personal income and has their own tax-free personal allowance, and their own set of tax thresholds. This fundamental principle provides everyone with absolute confidentiality for their personal tax affairs. For this reason, the Government is not currently considering changing this policy. A joint pension fund would not be consistent with the system of independent taxation.