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How is the Money Purchase Annual Allowance (MPAA) triggered?

The MPAA is triggered when someone takes taxable income flexibly from drawdown.

If your first taxable withdrawal is part way through the tax year, the reduced allowance only applies from this date onwards. Contributions before the first withdrawal would be measured against the standard annual allowance of £40,000. Contributions from that date to the end of the tax year would be measured at the reduced rate of £4,000 but overall contributions for this tax year will also be subject to your annual allowance. From the beginning of the next tax year, the reduced allowance (£4,000) applies for the whole tax year.