What’s a ‘Benefit Crystallisation Event’ (BCE)?


This term refers to a test that’s carried out whenever you take cash or income out of your pension pot. Or if you haven’t accessed it by the age of 75, the test will happen then.

All the test does is check whether you’ve exceeded your lifetime allowance (which is a limit to how much you can save into your pensions – the maximum for the 2022/2023 tax year is £1,073,100).

And if you’ve exceeded the lifetime allowance limit, the BCE test makes sure you get the appropriate tax charge.

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