PART 4 Modification of tax regime

15 Annual allowance charge
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 at Lower Tier or Upper Tier under the new scheme.
2 Section 234 of the Finance Act 2004 (defined benefits arrangements) is modified in its application to P as specified in paragraph (3).
Section 234 was amended by section 66 of, and paragraphs 1, 10 and 27 of Schedule 17 to, the Finance Act 2011 (c.11).
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 at Lower Tier that represents pensionable service for the old scheme is not to be counted as being part of the closing value.