The government has confirmed the pre-election policies in its 2017 Finance Bill that were due to take effect from April this year, including the cut to the money purchase annual allowance (MPAA), will apply as intended.
This means savers who have accessed their pension from age 55 will see the annual tax-free allowance cut from £10,000 to £4,000 for the 2017/18 tax year. The confirmation came in the form of the Finance Bill 2, which confirmed it would legislate for policies that have already been announced, and that there would only be technical adjustments made "to ensure the clauses function as intended". The 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 ne...
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