HM Revenue & Customs (HMRC) cannot tell how many savers have paid pension contributions above the money purchase annual allowance (MPAA) and subsequently faced additional tax charges, Aegon says.
The finding comes after the provider submitted a freedom of information (FoI) request to HMRC asking for an exact number of breaches. In its response, HMRC confirmed it did not collect data from individual tax returns, however, including how many would have breached the £4,000 MPAA limit. Instead, the data combine this group with those breaching the £40,000 standard annual allowance, or the tapered annual allowance. Aegon has today (20 September) called for HMRC's record-keeping to be enhanced to "show the extent of harm being caused" by the MPAA in the wake of the pandemic. The pr...
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