Source: http://www.legislation.gov.uk/ukpga/1999/16/schedule/10
Timestamp: 2013-05-20 03:46:58
Document Index: 627743638

Matched Legal Cases: ['art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 4', 'art. 2', 'art. 2', 'art. 2']

Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 1999. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to :Changes and effectsThis section lists the changes and effects yet to be applied to the specific provision you are viewing.Sch. 10 para. 4 repealed by 2003 c. 1 Sch. 8 Pt. 1Sch. 10 para. 5 repealed by 2003 c. 1 Sch. 8 Pt. 1Sch. 10 para. 6 repealed by 2003 c. 1 Sch. 8 Pt. 1Sch. 10 para. 8 repealed by 2003 c. 1 Sch. 8 Pt. 1Sch. 10 para. 1-10 repealed by 2004 c. 12 Sch. 42 Pt. 3Sch. 10 para. 12-18 repealed by 2004 c. 12 Sch. 42 Pt. 3Changes and effects yet to be applied to the whole Act, associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Blanket amendment words substituted by S.I. 2011/1043 art. 3 4Blanket amendment words substituted by S.I. 2011/1043 art. 3 6Commencement Orders yet to be applied to the Finance Act 1999:Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing legislation that affects this Act into force:S.I. 2003/392 art. 2 commences (2002 c. 21)S.I. 2003/938 art. 2 Sch. commences (2002 c. 21)S.I. 2003/962 art. 2(3) (4) Sch. 1 2 commences (2002 c. 21)S.I. 2003/1900 art. 2(1) Sch. 1 commences (2003 c. 21)S.I. 2003/3142 art. 3(2) commences (2003 c. 21)S.I. 2005/1126 art. 2 commences (2005 c. 11)S.I. 2009/402 art. 2 commences (2008 c. 9)S.I. 2009/404 art. 2 commences (2008 c. 9)S.I. 2009/571 art. 2-5 commences (2008 c. 9)S.I. 2010/128 art. 2 commences (2006 c. 18)S.I. 2010/495 art. 4(d) commences (2006 c. 18)S.S.I. 2003/456 art. 2 commences (2000 asp 5)Section 79. SCHEDULE 10E+W+S+N.I. Sharing of pensions etc. on divorce or annulmentAnnotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Modifications etc. (not altering text)C1Sch. 10 applied (with modifications) (10.5.2000) by S.I. 2000/1085, regs. 3-8Sch. 10 applied (S.) (28.1.2002) by S.I. 1995/365, Pt. W para. W14(2) (as inserted (28.1.2002) by S.S.I. 2001/465, reg. 3, Sch. 1) Definition of “pension business”E+W+S+N.I.1(1)Section 431B of the Taxes Act 1988 (meaning of “pension business”) shall be amended as follows.E+W+S+N.I.(2)In subsection (2)—(a)in paragraph (e) (contracts in substitution of contracts under paragraph (d)), after “(d) above” there shall be inserted “ or this paragraph ”; and(b)after that paragraph there shall be inserted the following paragraph—“(ea)any contract which is entered into, for purposes connected with giving effect to any pension sharing order or provision made in relation to a contract falling within paragraph (d) or (e) above or this paragraph and by means of which relevant benefits (see subsections (3) and (4) below), and no other benefits, are secured;”.
(3)After that subsection there shall be inserted the following subsection—“(2A)For the purposes of subsection (2)(d) above the members of and contributors to a scheme or fund shall be deemed to include any person who by virtue of any pension sharing order or provision (within the meaning of Part XIV) has become entitled to any credit as against the persons having the management of the scheme or fund.”
(4)In subsection (3) (meaning of “relevant benefits”)—(a)for “subsection (2)(d) and (e)” there shall be substituted “ subsection (2)(d) to (ea) ”; and(b)after the words “subsection (2)(e)”, wherever they occur, there shall be inserted “ or (ea) ”. Approval of retirement benefit schemesE+W+S+N.I.2(1)In subsection (2) of section 590 of the Taxes Act 1988 (conditions for approval of scheme), for paragraph (a) there shall be substituted—E+W+S+N.I.“(a)that the scheme is bona fide established for the sole purpose (subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme) of providing relevant benefits in respect of service as an employee;”.
(2)After that paragraph there shall be inserted the following paragraph—“(aa)that those benefits do not include any benefits payable to a person other than—
(3)In subsection (3) of that section (conditions for automatic approval), for paragraph (c) there shall be substituted the following paragraphs—“(ba)that any benefit for an ex-spouse, or for the widow or widower of an ex-spouse, is a benefit in relation to which the scheme satisfies the conditions set out in subsection (3A) below;
(4)In paragraph (d) of that subsection (restriction on surrender, commutation and assignment)—(a)for “except” there shall be substituted “except— (i)for the purpose of giving effect to a pension sharing order or provision, or
(b)for “his pension” there shall be substituted “ a pension provided for him ”.(5)After that paragraph there shall be inserted the following paragraph—“(da)that, in a case in which—
(6)After subsection (3) of that section there shall be inserted the following subsection—“(3A)The conditions mentioned in subsection (3)(ba) above are—
(7)In subsection (4) of that section (conditions that are referred to as “the prescribed conditions”), for “subsections (2) and (3)” there shall be substituted “ subsections (2) to (3A) ”.(8)After subsection (4A) of that section there shall be inserted the following subsections—“(4B)For the purposes of this section a benefit provided under any scheme is provided for an ex-spouse or the widow or widower of an ex-spouse, and shall be treated as not provided for an employee or the widow or widower of an employee, to the extent (and to the extent only) that—
Discretionary approval of retirement benefit schemesE+W+S+N.I.3In section 591(2) of the Taxes Act 1988—E+W+S+N.I.(a)in paragraph (b) (discretion to approve schemes providing benefits for widows on the death in service of an employee), after “widows” there shall be inserted “ and widowers ”; and(b)after that paragraph there shall be inserted the following paragraph—“(ba)which provides pensions for the widows and widowers of ex-spouses dying before the age at which their pensions become payable and for the children or dependants of ex-spouses; or”.
Non-approved retirement benefit schemesE+W+S+N.I.4In subsection (5) of section 595 of the Taxes Act 1988 (charge to tax in respect of certain sums paid by employer etc.), after “wife” there shall be inserted “ or husband, ” and after “widow” there shall be inserted “ or widower or ”.E+W+S+N.I.5In section 596 of the Taxes Act 1988, after subsection (3) (relief where a taxed contribution does not result in the payment of benefits) there shall be inserted the following subsection—E+W+S+N.I.“(4)Relief shall not be given under subsection (3) above in respect of tax on any sum if—
6In section 596A(8)(c) (lump sums provided under non-approved schemes), after the word “employee,”, in the first place where it occurs, there shall be inserted “ an ex-spouse of the employee, ”.E+W+S+N.I. Charge on pensions commuted in special circumstancesE+W+S+N.I.7(1)In section 599 of the Taxes Act 1988 (charge to tax where pension commuted in special circumstances), the words “Subject to subsection (1A) below,” shall be inserted at the beginning of subsection (1); and the following subsections shall be inserted after that subsection—E+W+S+N.I.“(1A)Subsection (1) above shall have effect in relation to the commutation of the whole or any part of a pension the amount of which has been affected by the making of any pension sharing order or provision as if paragraph (a) and the words after paragraph (b) were omitted.
(2)In subsection (6) of that section, after “subsection (1) above” there shall be inserted “ , or in applying subsection (1B) above ”. Charge on unauthorised paymentsE+W+S+N.I.8(1)In subsection (1) of section 600 of the Taxes Act 1988 (charge on unauthorised payments to employees), after “an employee” there shall be inserted “ or an ex-spouse ”.E+W+S+N.I.(2)In subsection (2) of that section (person charged), for the words from “the employee” to “shall” there shall be substituted “ the employee or, as the case may be, the ex-spouse shall (whether or not he is the recipient of the payment) ”. Definition of “retirement benefits scheme”E+W+S+N.I.9(1)In subsections (3) and (4)(b) of section 611 of the Taxes Act 1988 (definition of “retirement benefits scheme”), for the words “employees” and “employee”, wherever occurring, there shall be substituted, respectively, the words “ scheme members ” and “ scheme member ”.E+W+S+N.I.(2)After subsection (5) of that section there shall be inserted the following subsection—“(6)In this section “scheme member”, in relation to a scheme means—
(b)a person whose rights under the scheme derive from a pension sharing order or provision.”
Interpretation of Chapter IE+W+S+N.I.10(1)In subsection (1) of section 612 of the Taxes Act 1988 (interpretation of Chapter I of Part XIV), in the definition of “relevant benefits”, after the word “death”, in the first place where it occurs, there shall be inserted “ , or by virtue of a pension sharing order or provision ”.E+W+S+N.I.(2)In subsection (2) of that section (references to the provision of relevant benefits to include the provision of benefits under contracts with third parties)—(a)after “Chapter” there shall be inserted “ , in relation to a scheme, ”;(b)for “of an employer” there shall be substituted “ or ex-spouses ”; and(c)after “or the employee” there shall be inserted “ or ex-spouse ”.(3)After that subsection there shall be inserted the following subsection—“(2A)In subsection (2) above the reference to the employer is a reference to the person who is the employer in relation to the scheme.”
Overseas pensionsE+W+S+N.I.11In section 615(6)(b) of the Taxes Act 1988 (funds annuities from which are paid without deduction of tax to non-UK residents), after “purpose” there shall be inserted “ (subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme) ”.E+W+S+N.I. Rules prohibiting surrender or assignment of annuities etc.E+W+S+N.I.12(1)In section 634(6) of the Taxes Act 1988 (restriction on assignment or surrender of annuities), for “except that” there shall be substituted “except that— E+W+S+N.I.(a)an annuity may be assigned or surrendered for the purpose of giving effect to a pension sharing order or provision; and
(2)In section 634A(6) of that Act (restriction on assignment or surrender of right to income withdrawals), after “surrender” there shall be inserted “ , except for the purpose of giving effect to a pension sharing order or provision ”.(3)In section 635(5) of that Act (restriction on assignment or surrender of right to payment of lump sum), after “surrender” there shall be inserted “ , except for the purpose of giving effect to a pension sharing order or provision ”. Annuity payable on the death of a memberE+W+S+N.I.13(1)In section 636 of the Taxes Act 1988 (annuity payable after death of member to spouse or dependants), after subsection (3) there shall be inserted the following subsection—E+W+S+N.I.“(3A)The references in subsection (3) above—
(a)to the annual amount or highest annual amount of an annuity of which the member was in receipt before his death, and
(b)to the highest annual amount of an annuity that would have been payable if it had been purchased on the day before the member’s death,
shall each be construed in a case where payments of that annuity were or would have been affected by the making of any pension sharing order or provision as if the only payments of that annuity to be taken into account were those that have been or would have been so affected.”
(2)In subsection (10) of that section (restriction on assignment or surrender of annuities payable after death of member), for “except that” there shall be substituted “except that— (a)an annuity may be assigned or surrendered for the purpose of giving effect to a pension sharing order or provision; and
Rule in section 636A prohibiting assignment or surrenderE+W+S+N.I.14In section 636A(7) of the Taxes Act 1988 (restriction on assignment or surrender of right to income withdrawals after death of member), after “surrender” there shall be inserted “ , except for the purpose of giving effect to a pension sharing order or provision ”.E+W+S+N.I. Meaning of “relevant earnings”E+W+S+N.I.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—E+W+S+N.I.“(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. ” Purchased life annuitiesE+W+S+N.I.16In section 657(2) of the Taxes Act 1988 (annuities not treated as purchased life annuities within section 656), after paragraph (e) there shall be inserted “; or E+W+S+N.I.(f)to any annuity purchased, for purposes connected with giving effect to any pension sharing order or provision, for consideration which derives from—
Interpretation of Part XIVE+W+S+N.I.17In Chapter VI of Part XIV of the Taxes Act 1988 (interpretation of Part XIV), the following section shall be inserted after section 659C—E+W+S+N.I.“659D Interpretation of provisions about pension sharing.(1)In this Part “ex-spouse” means a party to a marriage that has been dissolved or annulled and, in relation to any person, means the other party to a marriage with that person that has been dissolved or annulled.
Commencement etc.E+W+S+N.I.18(1)In this paragraph—E+W+S+N.I.“the first appointed day” means such day as the Treasury may by order appoint as the first appointed day for the purposes of this paragraph;
“the second appointed day” means such day falling after the first appointed day as the Treasury may by order appoint as the second appointed day for the purposes of this paragraph.
(2)The power of the Treasury to appoint a day as the second appointed day for the purposes of this paragraph shall include power so to appoint different days for different purposes.(3)Subject to sub-paragraph (4) below, paragraphs 2 and 3(b) above apply for the purposes of the grant or withdrawal at any time on or after the first appointed day of any approval of a retirement benefits scheme (whenever made or approved).(4)Section 590(3)(bb) and (da) of the Taxes Act 1988 shall be disregarded for the purposes of determining whether any retirement benefits scheme approved before the first appointed day satisfies the prescribed conditions at any time before the second appointed day.(5)Every retirement benefits scheme which—(a)has, before the first appointed day, been approved by the Board for the purposes of Chapter I of Part XIV of the Taxes Act 1988, and(b)by virtue of having been approved before that day continues to be so approved on or after the second appointed day,shall have effect, so long as it continues to be approved on and after the second appointed day and notwithstanding anything in the rules of the scheme, as if (so far as it does not already do so) it contained provision satisfying the conditions set out in section 590(3)(bb) and (da) of the Taxes Act 1988.
(6)Paragraph 6 above applies to any lump sum provided on or after the second appointed day.(7)Paragraph 8 above applies to any payment on or after the second appointed day.(8)Subject to sub-paragraph (9) below, paragraphs 12 to 14 above apply for the purposes of—(a)the grant at any time on or after the first appointed day of any approval of a personal pension scheme (whenever made);(b)the withdrawal at any time on or after that day of approval of any personal pension scheme or personal pension arrangements (whenever approved).(9)Section 636(3A) of the Taxes Act 1988 shall be disregarded for the purposes of determining whether any personal pension scheme approved before the first appointed day, or any of the arrangements made by an individual in accordance with such a scheme, satisfies the prescribed conditions at any time before the second appointed day.(10)The Board may by regulations provide that, in such circumstances as may be prescribed by the regulations, this Schedule shall apply in the case of retirement benefits schemes approved before the first appointed day with such exceptions, exclusions and modifications as may be so prescribed.(11)Regulations under sub-paragraph (10) above may include such incidental, supplemental, consequential and transitional provision as the Board think appropriate.Annotations:Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.Subordinate Legislation MadeP1Sch. 10 para. 18(1) power fully exercised: 10.5.2000 appointed as first appointed day by S.I. 2000/1093, art. 2(a); 1.12.2000 appointed as second appointed day by S.I. 2000/1093, art. 2(b)Previous: ScheduleNext: ScheduleBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Schedule onlyPDF This Schedule onlyWeb page This Schedule onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. 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