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What is the limit of the Money Purchase Annual Allowance?

The Money Purchase Annual Allowance (MPAA) applies to anyone who has already taken flexible benefits from their pension. It means they will only receive tax relief on contributions of up to £4,000 into money purchase pensions each tax year. The benefits that trigger the MPAA include taxable income, but not the 25% tax-free lump sum.

The MPAA was reduced from £10,000 with effect from 6 April 2017. Like all tax rules, it may change in the future.

Find out more about MPAA