Sixty second summary
MPAA reduction will proceed as planned
17 Jul 2017 - Estimated reading time: 5 minutes
This issue of sixty second summary takes a look at the recent announcement regarding the money purchase annual allowance (MPAA). In the 2016 Autumn Statement, the Chancellor of the Exchequer announced his intention to reduce MPAA from £10,000 to £4,000, with effect from 6 April 2017.
The Government has now confirmed that tax clauses pruned from this year’s first Finance Bill will be grafted into a second Bill due later in the summer. Policies that were due to be implemented with effect from 6 April 2017 will retain that date of application. Therefore, the plan to reduce the money purchase annual allowance from £10,000 to £4,000, effective from the 2017/18 tax year will proceed as planned and those affected by the provisions 'should continue to assume that they will apply as originally announced'.
To find out more download our sixty second summary.