MPAA
‘Money purchase annual allowance’. This applies when you take an income from defined contribution pensions (also called ‘money purchase’ pensions).
Once you trigger the MPAA, your annual allowance for defined contribution pensions is reduced to £10,000 per year. That means if you pay any more than this amount into your defined contribution pensions per tax year, you’ll face a tax charge. You’ll also no longer be able to use carry forward for your defined contribution pensions.
The MPAA doesn't apply to any defined benefit pensions you hold.
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