Reducing the money purchase annual allowance
Download the full outcome
Detail of outcome
This document summarises the responses received. It explains the conclusions the government has reached on how this allowance will work.
Original consultation
Consultation description
The pension flexibilities introduced in April 2015 gave savers the ability to access their hard-earned pension savings flexibly, as best suits their needs. Once a person has accessed pension savings flexibly, if they wish to make any further contributions to a defined contribution pension, tax-relieved contributions are restricted to a special money purchase annual allowance (MPAA).
This consultation relates to government proposals to reduce the MPAA to £4,000, with effect from April 2017.
Documents
Last updated 20 March 2017 + show all updates
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Updated response document published with minor language changes to paragraphs 1.6 and 2.25
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Updated with the response to the consultation
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First published.