Consultation outcome

Reducing the money purchase annual allowance

This consultation has concluded

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 on the detail of the reduction to the money purchase annual allowance, which will be reduced to £4,000 from April 2017.

This consultation ran from

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.


Published 23 November 2016
Last updated 20 March 2017 + show all updates
  1. Updated response document published with minor language changes to paragraphs 1.6 and 2.25
  2. Updated with the response to the consultation
  3. First published.