BCE 5A | Practical Law

BCE 5A | Practical Law

BCE 5A

BCE 5A

Practical Law UK Glossary 9-380-6449 (Approx. 4 pages)

Glossary

BCE 5A

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 5A occurred when a member of a defined contribution arrangement who had designated all or part of their fund for drawdown pension attained the age of 75. The amount crystallised was the market value of the designated funds, less any amounts already crystallised under BCE 1. Following abolition of the lifetime allowance, BCE 5A 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.)