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FB 11: Pension payments to former employees
or “Former employee pensions: how they're treated when shared after a relationship split”
You could also call this:

“Former business partners' pensions may be paid to others after separation”

You might receive a pension from a partner in a business partnership or from someone else. If you and your partner split up and divide your property, your partner or their business might have to pay some or all of your pension to another person. When this happens, the law treats it as if the pension was still being paid to you. This is important for tax purposes.

The rules about this are in section DC 3. These rules say that even if someone else gets the pension money because of your property split, it’s still counted as if you got the pension yourself.

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Next up: FB 13: Trading stock

or “Rules for taxing trading stock transferred in relationship property settlements”
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Part F Recharacterisation of certain transactions
Transfers of relationship property

FB 12Pension payments to former partners

  1. This section applies for the purposes of section DC 3 (Pension payments to former partners) when a person is entitled to the payment of a pension from a partner in a partnership or from any person, and because of a settlement of relationship property, the partnership, partner, or person pays some or all of the amount of the pension to another person.

  2. Section DC 3 applies to the amount paid as if it were the payment of a pension to the former partner.

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Notes
  • Section FB 12 list of defined terms partner: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
  • Section FB 12 list of defined terms partnership: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).