Rachel Vahey: Why April's MPAA cut must receive a stay of execution

Whisper it quietly but last November's Autumn Statement could almost have been labelled boring - were it not for the announcement reducing the Money Purchase Annual Allowance (MPAA). The Treasury wants to cut the MPAA from £10,000 to £4,000 from this April but the arguments backing up its case are a little shaky. It says it is concerned too many people are ‘double-dipping' on tax relief - in other words, taking benefits out of pension schemes just to reinvest them again and earn another 25% tax-free portion. With the advent of pension freedoms, many more people are accessing some of t...