(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)
The test of whether or not a pension debit applies for
Revenue limits is determined by the employee's status at the time
of the pension sharing on divorce order. If the pension debit must
be taken into account because the employee fell within the terms of
PSI6.5.89 at the time of the divorce, a
later change in the employee’s circumstances that meant at
that later date the employee qualified as a moderate earner would
not mean that the pension debit could then be ignored. Similarly, a
pension debit can be ignored permanently when an employee qualified
as a moderate earner at the time of the divorce (see
PSI6.5.90) regardless of any subsequent
employment changes.
