Reducing the money purchase annual allowance consultation

23 November 2016

When a person has accessed pension savings flexibly if they then wish to make further contributions to a defined contribution pension scheme the tax relieved contributions are to be restricted to an MPAA of £4,000.

There are two questions which the government is seeking stakeholder views from this consultation:

Question 1: Do you agree that a £4,000 MPAA would minimise re-cycling pension savings and that, coupled with ongoing monitoring, the new MPAA will allow the continued successful roll-out of automatic enrolment?

Question 2: Is there any evidence that setting the MPAA at £4,000 would impact disproportionately on particular groups?

Responses to this consultation will help to inform in legislative changes.

The consultation will run for 12 weeks and close on 15 February 2017.Reponses should be submitted to MPPAResponses@hmtreasury.gsi.gov.uk.