(This archived guidance relates to HMRC discretionary
practice before the 6th April 2006. For current guidance on
Registered Pension Schemes see the Registered Pension Schemes
Manual)
Paragraph 18 of Schedule 10 of Finance Act 1999 has 2
commencement dates to bring the tax approval requirements relating
to pension sharing on divorce into effect. The first commencement
date, called the “first appointed day”, was 10 May 2000
and from this date a scheme is not capable of gaining approval
unless it has pension sharing on divorce provisions in its
documentation (but see
PSI11.1.16 in respect of
death-in-service schemes) along with all the other provisions a
scheme must have to obtain approval. The other commencement date,
called the “second appointed day” was 1 December 2000
and on this date overriding legislation contained in Schedule 10 of
Finance Act 1999 came into force for schemes that were approved
before the first appointed day. The overriding legislation places
new maximum benefit limitations on members whose benefits are
reduced by a pension sharing order.
