Taxes Consolidation Act 1997 Schedule 23B paragraph 2

Occurrence of benefit crystallisation event

Paragraph 2 of Schedule 23B defines the circumstances in which a benefit crystallisation event occurs, triggering a test of an individual's pension fund value against the standard fund threshold.

• A benefit crystallisation event (BCE) arises when an individual becomes entitled to a pension, annuity or lump sum, or exercises an option to transfer funds to an ARF or approved minimum retirement fund.
• A BCE also arises where PRSA, RAC or PEPP assets are retained rather than drawn down, including where they become vested on or before the owner's 75th birthday, or where PRSA assets are transferred into a vested PRSA.
• Transfers directed by the individual to an overseas pension arrangement under the Overseas Transfer Payments Regulations 2003 constitute a BCE.
• An anti-avoidance BCE applies where a pension already in payment is increased by more than the permitted margin above the amount originally payable when the individual first became entitled.