Please be aware of a suspected scam relating to Store First Newco Limited. Read Our Full Update Here
Please note: The deadline for requesting income payments prior to 5 April 2026 has now passed and we will not be able to accept any new requests.
If you wish to contribute before the end of the 2025/26 tax year, you need to ensure that any payment is received in your member bank account by close of business Thursday 2 April 2026 as we cannot guarantee any payments made from Friday 3 to Sunday 5 April will be received on those days. If a contribution is not received into the member bank account by 5 April 2026, it will be treated as a 2026/27 contribution.
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Please be aware of a suspected scam relating to Store First Newco Limited. Read Our Full Update Here
Please note: The deadline for requesting income payments prior to 5 April 2026 has now passed and we will not be able to accept any new requests.
If you wish to contribute before the end of the 2025/26 tax year, you need to ensure that any payment is received in your member bank account by close of business Thursday 2 April 2026 as we cannot guarantee any payments made from Friday 3 to Sunday 5 April will be received on those days. If a contribution is not received into the member bank account by 5 April 2026, it will be treated as a 2026/27 contribution.
View our Current Terms and Conditions of Business

Benefit Crystallisation Events (BCEs) Explained

A Benefit Crystallisation Event (BCE) is an HMRC term used to describe the point at which pension benefits are tested for tax purposes.

What is a BCE?

A BCE occurs whenever you access or become entitled to pension benefits. Each event tests the value of the benefits being taken against your available tax-free allowances.

Although the Lifetime Allowance was abolished in April 2024, BCEs still exist and are now used to track usage of:

  • The Lump Sum Allowance (LSA)
  • The Lump Sum and Death Benefit Allowance (LSDBA)

Common types of BCEs

Examples include:

  • Taking a tax-free lump sum (PCLS)
  • Moving funds into drawdown
  • Taking an UFPLS
  • Buying an annuity
  • Certain death benefit payments

Each time one of these happens, a BCE is recorded.

Why are BCEs still important?

Even without the Lifetime Allowance:

  • Your total tax-free cash is capped
  • Pension providers must report BCEs to HMRC
  • Accurate records help avoid unexpected tax charges

Your SIPP provider will normally handle BCE calculations and reporting on your behalf.