PART 4Modification of tax regime

Annual allowance charge15.

(1)

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

(a)

is a member of the 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; and

(c)

becomes entitled to payment of an ill-health pension under regulation 107 of the Teachers’ Pension Scheme (Scotland) (No. 2) Regulations 2014.

(2)

Section 234 of the Finance Act 200419 (defined benefits 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.