"Woah Trigger!" exclaims Neil MacGillivray, who uses a real-life case study to assess the common ways savers can trigger the money purchase annual allowance and details how advisers can help clients sidestep accidentally incurring the tax charge
The recent finding by the Financial Ombudsman Service in favour of a client who triggered the money purchase annual allowance (MPAA) and subsequently incurred a tax liability due to the pension advice given, perhaps merits revisiting the common triggers for the MPAA. The MPAA came into effect from 6 April 2015 with the stated aim of ending the exercise of individuals withdrawing funds from money purchase arrangements and then recycling them back into a pension. Personally, I've never really understood the rationale for this piece of legislation being introduced, as existing legislatio...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
