Neil MacGillivray: Triggering the MPAA and a real-life case study

'Three common triggers'

clock • 3 min read

"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...

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