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The taxpayer received an occupational pension from his employer. In his tax returns, he claimed that one half of the pension was his wife's, as he had transferred it to her.
She claimed a tax refund as that income together with her state pension was less than her personal allowance. HMRC did not accept that the transfer had taken place and amended the relevant returns.
The husband and wife appealed, saying that as pensions could be split between divorced couples, it was only fair that the same could be done to married couples.
Under ITEPA 2003, s 582, the Special Commissioner said that the husband was the person who was entitled to and received the pension.
Fairness did not enter into it. The law had to be applied: HMRC's amendments to the returns were correct and the wife was not entitled to any tax refunds.
The taxpayer's appeal was dismissed.
Stubbs (SpC 638)
