PSI6.5.89 - Total Benefits On Retirement At Normal Retirement Age: Maximum Total Benefits – Pension Sharing on Divorce – Pension Debits and Revenue Limits
(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)
[PN7.7]
Where an employee’s benefits are subject to a pension
sharing order the effect of the resulting pension debit must be
taken into account for Revenue limits purposes for employees
who
- are controlling directors of a participating employer at the date on which the marriage was dissolved or annulled
or
- were controlling directors of a participating employer at any time within the 10 years before the date on which the marriage was dissolved or annulled
or employees who are not or were not controlling directors in the last 10 years but
- have earnings that exceed ¼ of the permitted maximum (see Introduction 4.15b) for the year of assessment in which the marriage was dissolved or annulled. Earnings for this purpose means
- earnings in respect of pensionable service to which the scheme relates, and
- which were received in the year of assessment immediately before the year of assessment in which the marriage was dissolved or annulled, and
- from which tax was deducted under PAYE.
The pension does not have to be taken into account for Revenue limits purposes for employees who are “moderate earners” (see PSI6.5.90).
