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The MPAA in summary.

 Where taxpayers have accessed a pension, the amount they can pay into a pension and still get tax relief is the Money Purchase Annual Allowance (or MPAA) which for the tax year 2019-20 is £4,000. Where it’s exceeded it should be entered on the SA return and appropriate tax paid. The MPAA runs from:

  • the day after the pension was flexibly accessed to the end of the tax year, or
  • the whole of the tax year if flexibly accessed in a previous tax year.

Unused allowances from previous tax years can’t be used to reduce the amounts paid above the MPAA. Where the MPAA has been exceeded, calculate:

  1. The alternative chargeable amount.
  2. The default chargeable amount.

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Article from ACCA In Practice