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MPAA reduced to £4,000 per year
19 January 2018

MPAA reduced to £4,000 per year

The Government has confirmed that the reduction in the Money Purchase Annual Allowance (MPAA) from £10,000 to £4,000 will go ahead. The change, which was due to come into force on 6 April 2017, was put on hold as a result of the snap General Election.

The MPAA affects people who have begun to access their retirement savings flexibly, as it limits how much can be contributed to a pension scheme (by them or their employer) without attracting a tax charge.

With effect from 6 April 2017, the MPAA has therefore been reduced from £10,000 to £4,000 per year. The Standard Annual Allowance remains at £40,000 per year.

You can find out more on the Pensions Advisory Service website.

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