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—
“(4)Relief shall not be given under subsection (3) above in respect of tax on any sum if—
(a)the reason for there having been no payment in respect of, or in substitution for, the benefits, or part of the benefits, in question, or
(b)the event by reason of which there will be no such payment,
is a reduction or cancellation, as a consequence of any pension sharing order or provision, of the employee’s rights in respect of the benefits.”