Money purchase annual allowance update

Despite some confusion from the government not including details in the Finance Bill 2017, the money purchase annual allowance (MPAA) has been in place retrospectively from April 2017. 

The (MPAA) has been reduced from £10,000 to £4,000. This means that anyone who has flexibly accessed their pension income will be limited to saving £4,000 a year (£3,200 before basic rate tax relief) into a personal pension, without triggering a tax charge. This has been put into place to stop individuals recycling tax relief.