What is the money purchase annual allowance?

If you've flexibly accessed your benefits, such as taken an uncrystallised funds pension lump sum (UFPLS) or taken income from a flexi-access drawdown fund, the Money Purchase Annual Allowance (MPAA) is the amount that can be paid in one year to your money purchase arrangements without a tax charge applying. For the current tax year, the MPAA is £10,000.

If the MPAA provisions apply to you, and during the year more than £10,000 has been paid to your money purchase arrangements under all of your registered pension schemes, a tax charge:

Special rules apply in the year that the MPAA rules first applies to you. In that year, only money purchase contributions paid since the date that the MPAA first applies are tested against the MPAA. If:

Please speak to a financial adviser for more information.