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.