Finance Act 1999

15 (1) In section 644 of the Taxes Act 1988 (which for the purposes of references to relevant earnings contains provisions in subsections (6A) to (6F) for excluding the income of controlling directors), after subsection (6E) there shall be inserted the following subsection— U.K.

“(6EA) Where—

(a) there is a time at which a person would be in receipt of any benefits under a scheme but for any debit to which any of his rights under that scheme became subject by virtue of any pension sharing order or provision, and

(b) the benefits he would be in receipt of are benefits payable in respect of past service with a company,

that person shall be deemed for the purposes of subsections (6A) to (6E) above to be in receipt at that time of benefits under that scheme and the benefits which he is deemed to be in receipt of shall be deemed to be benefits in respect of past service with that company.”

(2) In subsection (6F) of that section (construction of subsections (6A) to (6E))—

(a) in the words before paragraph (a), for “(6E)” there shall be substituted “ (6EA) ”;

(b) in paragraph (c) (benefits in respect of past service), after “the company” there shall be inserted “ but do not include references to benefits which (within the meaning of section 590) are provided for him as an ex-spouse ”; and

(c) in paragraph (d) (transfer payment in respect of past service), at the end there shall be inserted “ but do not include references to any transfer payment made for the purpose of giving effect to a pension sharing order or provision. ”