Taxes Consolidation Act 1997 Schedule 23B paragraph 3

Calculation of amount crystallised by a benefit crystallisation event

Paragraph 3 of Schedule 23B sets out the rules for calculating the amount crystallised by each type of benefit crystallisation event.

• For a defined benefit pension, the crystallised amount is the annual pension multiplied by the relevant age-related factor, with a split calculation available where part of the pension accrued before 1 January 2014.
• For a defined contribution arrangement, the crystallised amount is the market value of the assets used to purchase the annuity, and for a lump sum it is simply the amount of the lump sum paid.
• Where pension assets are transferred to an ARF, retained in a PRSA or PEPP, transferred to a vested PRSA, or transferred overseas, the crystallised amount is the aggregate value of the cash sums and assets involved.
• Where a pension in payment is increased beyond the permitted margin, the crystallised amount is the excess increase multiplied by the age-related factor, with a deduction for any previous increases that have already given rise to a BCE.