Pension annual allowance

The Finance Bill 2017 confirms that the so-called Money Purchase Annual Allowance

(‘MPAA’) has been reduced from £10,000 to £4,000 p.a. with retrospective effect from 6 April 2017. The MPAA limits the pension contribution on which people who have drawn income benefits from their personal or other “money purchase’ pension arrangements are able to claim tax relief. The change stems from government concerns that pension holders might be re-cycling their savings and claiming tax relief twice on the same contribution.

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Pension annual allowance

The Finance Bill 2017 confirms that the so-called Money Purchase Annual Allowance

(‘MPAA’) has been reduced from £10,000 to £4,000 p.a. with retrospective effect from 6 April 2017. The MPAA limits the pension contribution on which people who have drawn income benefits from their personal or other “money purchase’ pension arrangements are able to claim tax relief. The change stems from government concerns that pension holders might be re-cycling their savings and claiming tax relief twice on the same contribution.