Tax Relief on Rental Income ; Reliefs related to spousal pension ?

Kinsailor

Hello,
Our situations are as follows:

Contributor : Taxpayer Age 58 - under PAYE with employer AVC; Full Tax reliefs availed of for pension payments - at SFT limit based on combination of DB and AVC pensions.

Spouse also age 58 - No PAYE Income in past 30 years; No Pension contributions made - will just receive non contributory pension

Currently Jointly Assessed.

We now have a new additional income source : house rental income - Nett taxable income from rental is approx Eur 5,000 per year.

Question 1.
Is it possible to assign this rental income to my spouse in my tax assessment thereby opening up the potential for tax relief on that income for her based on making tax deductible payments to a pension fund for her. I am assuming that my (husband SFT) limit has no impact on such payments (as I assume that she should have her own limit).

Question 2.
Some taxed income has been used to purchase shares : Can dividend income related to the shares also be assigned to my spouse and similarly used as income against which pension contributions can be made in a tax effective manner?

Thank you

barneystinson

Kinsailor wrote: »

Hello,
Our situations are as follows:

Contributor : Taxpayer Age 58 - under PAYE with employer AVC; Full Tax reliefs availed of for pension payments - at SFT limit based on combination of DB and AVC pensions.

Spouse also age 58 - No PAYE Income in past 30 years; No Pension contributions made - will just receive non contributory pension

Currently Jointly Assessed.

We now have a new additional income source : house rental income - Nett taxable income from rental is approx Eur 5,000 per year.

Question 1.
Is it possible to assign this rental income to my spouse in my tax assessment thereby opening up the potential for tax relief on that income for her based on making tax deductible payments to a pension fund for her. I am assuming that my (husband SFT) limit has no impact on such payments (as I assume that she should have her own limit).

Question 2.
Some taxed income has been used to purchase shares : Can dividend income related to the shares also be assigned to my spouse and similarly used as income against which pension contributions can be made in a tax effective manner?

Thank you

The answer to both your questions is that the income derived from assets follows the ownership of the assets. So if you want the income to be your spouses you should transfer the assets to her.

In addition, the tax relief for pension contributions is only available against earned income i.e. not available against passive income like rents or dividends.

Kinsailor

Thank you Barneystinson for a very helpful reply.

Geuze

Kinsailor wrote: »

Hello,
Our situations are as follows:

Contributor : Taxpayer Age 58 - under PAYE with employer AVC; Full Tax reliefs availed of for pension payments - at SFT limit based on combination of DB and AVC pensions.

Spouse also age 58 - No PAYE Income in past 30 years; No Pension contributions made - will just receive non contributory pension

Note that non-con pensions are means-tested against income and spouse's income.