BCE 7 | Practical Law

BCE 7 | Practical Law

BCE 7

BCE 7

Practical Law UK Glossary 9-380-7482 (Approx. 4 pages)

Glossary

BCE 7

A benefit crystallisation event (BCE) that before 6 April 2024 triggered a test against the lifetime allowance available to a member of a registered pension scheme. BCE 7 occurred when a scheme paid a lump sum death benefit that was a defined benefits lump sum death benefit (in the case of a defined benefit scheme) or an uncrystallised funds lump sum death benefit (in the case of a defined contribution scheme) in relation to a member who died before reaching the age of 75. The amount crystallised was the amount of the lump sum payment. Following abolition of the lifetime allowance, BCE 7 remains relevant only in the context of the transitional provisions applying to members who used up some or all of their lifetime allowance before 6 April 2024. (Section 216, Finance Act 2004 and Part 6, Schedule 9, Finance Act 2024.)