Rule reversal on pensions sharing and divorce

Through interpretation of the Finance Bill Abbey for Intermediaries says the rule falls under the new simplified tax regime that comes into effect on A-Day. It will apply to those people who have had their pension rights cut as a result of a pension sharing arrangement under court orders during divorce proceedings. After 5 April 2006, however, the amount of the pension share will act against the recipient’s lifetime allowance, rather than the donor’s lifetime allowance, leaving the donor to rebuild their full rights. The new rules will apply to pension sharing orders granted before an...