PART 4Modification of tax regime
Lifetime allowance charge: modification of provisionsI113
1
This regulation applies to a person (P), who—
a
is a member of the old scheme by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2014 (final salary link);
b
is a member of the new scheme by virtue of pensionable service for the new scheme;
c
is being paid an ill-health pension calculated under the transitional provisions of the new scheme; and
d
has an ill-health pension paid from new scheme reduced as a consequence of P becoming entitled to payment of a scheme pension (within the meaning of paragraph 2 of Schedule 28 to the Finance Act 200416 under the old scheme.
2
Section 216 of the Finance Act 200417 (benefit crystallisation events and amounts crystallised) is modified in its application to P is modified in its application to P as specified in paragraph (3).
3
The payment of any scheme pension from the old scheme to P is treated as if it was not a benefit crystallisation event within the meaning of section 216 of the Finance Act 2004.
Annual allowance chargeI214
1
This regulation applies to a person (P), who—
a
is a member of the old scheme by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2014 Act;
b
is a member of the new scheme by virtue of pensionable service for the new scheme; and
c
becomes entitled to payment of an ill-health pension under the transitional provisions of the new scheme.
2
Section 234 of the Finance Act 200418 (defined benefit arrangements) is modified in its application to P as specified in paragraph (3).
3
When calculating the closing value of P’s rights under the new scheme for the pension input period during which P becomes entitled to payment of the ill-health pension, the element of the ill-health pension that represents pensionable service for the old scheme is not to be counted as being part of the closing value.