MPAA

Sharktail

Hi all
will finish work July 2023 I had intended to input my whole salary that year up until the point I’m no longer working , so my question is I’m aware I’ll trigger the MPAA upon purchasing an annuity ,does the MPAA come into force for the full financial year or the point I access pension 
thanks 

NoMore

Buying an annuity does NOT trigger the MPAA.

But for info the MPAA applies from when it is triggered

Marcon

NoMore said:

Buying an annuity does NOT trigger the MPAA.

...unless you only use part of your fund to buy the annuity, and 'flexibly access' any of the balance.

NoMore

Marcon said:

NoMore said:

Buying an annuity does NOT trigger the MPAA.

...unless you only use part of your fund to buy the annuity, and 'flexibly access' any of the balance.

Why are you trying to make out I am wrong, buying an annuity does not trigger the MPAA, the OP mentioned nothing else.

Flexibly accessing does trigger but that's a separate operation and not mentioned at all in this thread. Flexibly accessing a pension is the trigger, it has nothing to do with if an annuity is bought or not.

squirrelpie

"Why are you trying to make out I am wrong"

He's not, he's just providing extra information in case it's relevant to the OP.

xylophone

 I’m aware I’ll trigger the MPAA upon purchasing an annuity 

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/money-purchase-annual-allowance-mpaa

The MPAA won’t normally be triggered if:  

• You take a tax-free cash lump sum and buy a lifetime annuity that provides a guaranteed income for life that either stays level or increases. 
• You take a tax-free cash lump sum and put your pension pot into flexi-access drawdown but don’t take any income from it. 

There are special rules if you want to cash in a number of small pension pots valued at less than £10,000 then make sure you check with your provider that it will be treated as taken under the small pot lump sum rules. Otherwise, there’s a risk the MPAA will be triggered. 

 Would you want an interview with Pension Wise?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

NoMore

squirrelpie said:

"Why are you trying to make out I am wrong"

He's not, he's just providing extra information in case it's relevant to the OP.

Well they could do that without quoting me and just warning OP that flexibly accessing does trigger MPAA. I don't understand the need to quote me and the 'unless..' it just seems to me they are trying to make me look like I'm wrong.

squirrelpie

I think you're being oversensitive.

Sharktail

Thanks all just to clarify if I put 16k gross up until the day I retire in July (then zero rest of financial year) I won’t receive a tax bill 

Albermarle

Sharktail said:

Thanks all just to clarify if I put 16k gross up until the day I retire in July (then zero rest of financial year) I won’t receive a tax bill 

The timing is not important within a tax year.

For example if say you only worked for July, August and September and earned £10K in total, you could add £10K gross ( £8K net) anytime in the tax year. So within the three months worked, or an earlier or later month. 

Marcon

NoMore said:

squirrelpie said:

"Why are you trying to make out I am wrong"

He's not, he's just providing extra information in case it's relevant to the OP.

Well they could do that without quoting me and just warning OP that flexibly accessing does trigger MPAA. I don't understand the need to quote me and the 'unless..' it just seems to me they are trying to make me look like I'm wrong.

A lot of people read these threads, not just OP. I've added to what you said to try and give a full picture - and quoting you was the simplest way to achieve that objective.