PART 4Modification of tax regime
Annual 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; and
c
becomes entitled to payment of a lower tier ill-health pension under the new scheme.
2
Section 234 of the Finance Act 200418 (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 lower tier ill-health pension, the element of the lower tier ill-health pension that represents pensionable service in the old scheme is not to be counted as being part of the closing value.