Government confirms MPAA cut to £4,000 from next month

Announcing the cut in the 2016 Autumn Statement, Chancellor Philip Hammond argued it was intended "to prevent inappropriate double tax relief". The policy has drawn consistent criticism since, however, with commentators arguing it would undo some of the positives introduced through pension freedoms. The Money Purchase Annual Allowance (MPAA) applies to individuals who have flexibly accessed their pension benefits. The original limit of £10,000 was introduced in April 2015 to stop people claiming further tax relief on any new contributions made to their pots. While today confirming the...