MPAA Effective date

Pat38493

Easy question hopefully - does the MPAA limit apply restrospectively to the entire tax year you are currently in?

So for example if I triggered MPAA in March, but I had paid more than 10K into the pension during the tax year up to March, I would be in trouble?

ColdIron

It's not retrospective

• When does it apply?

• The money purchase annual allowance applies to all defined contribution savings made by that individual after the date it's triggered. If this occurs part-way through a pension input period only the contributions made after the trigger are tested against the money purchase annual allowance. However, the total contributions/accrual in that tax year are also tested against the £60,000 annual allowance or tapered annual allowance.

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/money-purchase-annual-allowance

https://www.gov.uk/guidance/work-out-your-allowances-if-youve-flexibly-accessed-your-pension