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.