Pensions Simplification

Pension sharing on divorce arrangements

Post 5 April 2006 pension credits granted under a pension sharing order will count against the recipient's lifetime allowance but pension debits will not be counted towards the donor's lifetime allowance. Neither pension debits nor credits will count towards the annual allowance.

For pension existing sharing orders at 5 April 2006, in calculating the value of a member's pre 6 April 2006 pension rights, the value of a pension allocated to a spouse on divorce will be ignored for the purposes of both spouses' lifetime allowances.

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