The Money Purchase Annual Allowance (MPAA) was introduced on 6 April 2015 and applies to those individuals who have accessed pension benefits under the new flexible retirement rules.
Usually these will be individuals who have taken any Flexi-Access Drawdown or Uncrystallised Funds Pension Lump Sum (UFPLS), or those who had used pre-April 2015 ‘Flexible Drawdown’. It may also apply to certain types of flexible annuity bought since April 2015, and those who have exceeded the maximum income limits under an existing Capped Drawdown arrangement.
The MPAA was £10,000 but reduces to £4,000 with effect from today, anyone under age 75 who is affected by this should consult their financial adviser in the first instance.
April 6th, 2017