Pension Attachment Order

Pension Attachment Order

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My client receives a percentage of her ex husbands pension as part of thier divorce settlement. She believes that he pays tax and once I have estalished that he has paid the tax, where should I enter this 'income' on her tax return.
Steven Leather

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By Helen Crowley
18th Jun 2008 12:45

What does P60 say?
Is the pension paid directly to the husband by the Pension provider and he pays over to his ex the percentage? If so I would say it should all be shown on the husbands tax return and nothing would be shown on the ex wife's return as it would be treated in the same way as Maintenance or alimony.
If you type "Pension Attachment Order" into Google you will get more information. I understand that payments under such an order are tax free on the recipient because the payment is deemed to have been made out of the net payment received by the spouse.

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