MSE News: Autumn Statement 2016: Pensions freedoms loophole tightened

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Autumn Statement 2016: Pensions freedoms loophole tightened...
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'Autumn Statement 2016: Pensions freedoms loophole tightened'
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  • hyubh
    hyubh Posts: 3,539 Forumite
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    When will Martin Lewis stop masquerading as a financial adviser. This afternoon a caller posed a question relating to the Autumn Statement clearly confusing the annual allowance with the reduced pension input available after entering UFPLS. Not only did Martin not correct the caller that the annual allowance was not affected

    Um, in what way is the Money Purchase Annual Allowance not one form of the Annual Allowance...?
  • jamesd
    jamesd Posts: 26,103 Forumite
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    hyubh wrote: »
    Um, in what way is the Money Purchase Annual Allowance not one form of the Annual Allowance...?
    The person was simply wrong. If you take a UFPLS - the 25% tax free 75% taxable lump sum - you are then subject to a reduction in your annual allowance for money purchase pensions from £40k to £10k a year now and to £4k a year from April 2017.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Loophole? It was a clearly documented part of the new rules so how's that a loophole?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • JezR
    JezR Posts: 1,697 Forumite
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    It might have been more logical to make this the same value as applicable to those without earnings, ie £3600. Ideally raise this to the £4000 figure as it has been static for so long.
  • EdSwippet
    EdSwippet Posts: 1,589 Forumite
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    gadgetmind wrote: »
    Loophole? It was a clearly documented part of the new rules so how's that a loophole?
    Definition of loophole
    noun
    1. an ambiguity or inadequacy in the law or a set of rules.
    2. a promised tax allowance or relief that a government finds it inconvenient to honour.
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