What is a Relevant Benefit Crystallisation Event?

A Relevant Benefit Crystallisation Event happens when you take a tax-free lump sum payment. There are none directly associated with buying an annuity itself. However, if you take a tax-free lump sum at the same time - which can normally be up to 25% of your pension value - this will be tested against both your Lump Sum Allowance and your Lump Sum and Death Benefit Allowance.