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 whether by virtue of pensionable service for that scheme or deemed transfer scheme service under paragraph 2 of Schedule 7 to the 2014 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 regulation 110 (entitlement to ill-health pension) or a total incapacity pension under regulation 116 (entitlement to total incapacity pension) of the new scheme regulations; 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 200414) under the old scheme.

2

Section 216 of the Finance Act 200415 (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.