PART 4Modification of tax regime

Lifetime allowance charge14.

(1)

This regulation applies to a person (P), who—

(a)

is a member of an old scheme whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2013 Act (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 under the transitional provisions of the new scheme; and

(d)

has an ill-health pension paid from the 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 200417) under the old scheme.

(2)

Section 216 of the Finance Act 200418 (benefit crystallisation events and amounts crystallised) 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.