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