MPAA remains at £10k until General Election

Having planned to reduce the Money Purchase Annual Allowance (MPAA) from £10k a year to £4k from April 2017, the Government has now decided to put this on hold. The final decision will be taken after the General Election, but for the time being it will remain at £10k.

The MPAA affects people who have flexibly accessed their retirement savings, as it limits how much they can continue to save into a pension scheme without attracting a tax charge. You can find out more on the Government website and those affected will shortly be receiving a letter from L&G. There is nothing you need to do for now and we will continue to keep you updated.