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Regulation 14 The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567Ìý

When aÌýrelevant benefit crystallisation eventÌý(rBCE) occurs the member, or if the member has died the member’s personal representative, must be given a statement telling them how much of the member’s lump sumÌýallowanceÌýand lump sumÌýandÌýdeath benefit allowance haveÌýbeen used up by the relevant benefit crystallisation event.ÌýÌý

The requirement to provide this relevantÌýbenefit crystallisationÌýeventÌýstatement will fall to the scheme administrator or an insurance company.Ìý

When the scheme administrator has to provide a relevant benefit crystallisation event statement

The scheme administrator must give a relevant benefit crystallisationÌýeventÌýstatement to the member, or the member’s personal representative.ÌýÌý

The scheme administrator must give the member a relevant benefit crystallisationÌýeventÌýstatement:ÌýÌý

• at least once every tax year if the member is receiving a pension from the scheme, orÌýÌý
• where the scheme administratorÌýisn’tÌýrequired to provide an annual relevant benefit crystallisationÌýeventÌýstatement for the tax year, within three months of a relevant benefit crystallisation event that occurred under the scheme in respect of the member.ÌýÌý

When the scheme administrator doesn't have to provide an annual rBCE statement

The scheme administrator doesn't need to provide an annual relevant benefit crystallisation event statement in the following circumstances:

• if an insurance company is required to provide the rBCE statement, or
• in respect of a pension to which the member had an actual entitlement before 6 April 2006

What should be included in the relevant benefit crystallisation event statementÌý

The relevant benefit crystallisation event statement must show the amount of the member's lump sum allowance and lump sum and death benefit allowance used up by:

• any relevant benefit crystallisation events under the scheme in respect of the member to the extent that sums and assets representing those benefits have not been transferred to another registered pension scheme
• where the scheme has received a transfer of rights in respect of a member, any relevant benefit crystallisation event prior to those transferred rights.

How to calculate the amount of the member's allowances expended

Regulation 7 The Registered Pension Schemes (Provisions of Information) Regulations 2006 - SI 2006/567

The amount of a member’s lump sum allowance or lump sumÌýandÌýdeath benefit allowanceÌýexpendedÌýwhen a relevant benefit crystallisation event occurs is the non-taxable amount in relation to the lump sum which the member has become entitled to, or theÌýfull amount oftheÌýlump sum death benefit which a person is paid in respect of the member.ÌýÌý

The total amount of the member’s lump sum allowance, or lump sum and death benefit allowance,ÌýexpendedÌýis the total of the amounts in respect of each relevant benefit crystallisation event that has occurred in relation to the member.ÌýÌý

You can read more about relevant benefit crystallisation events atÌýPTM173000.Ìý

PenaltiesÌý

Where a scheme administrator does not provide the member with aÌýrelevant benefit crystallisation eventÌýstatement, or provides it late, the scheme administrator may be liable to a penalty.Ìý

HMRC will not normally seek to raise a penalty where the scheme administrator has not been able to provide the statement to the member in the tax year in which theÌýrelevantÌýbenefit crystallisationÌýeventÌýoccursÌýas long asÌýthe member is provided with the statement within 3 months of theÌýrelevant benefit crystallisation event.Ìý