Glossary · Pensions
MPAA (Money Purchase Annual Allowance)
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Definition: A reduced pension annual allowance of £10,000 that applies once you have flexibly accessed a defined-contribution pension.
Triggered by taking taxable drawdown income, a UFPLS lump sum, or certain flexible annuities. Not triggered by just taking the 25% tax-free lump sum. Cannot be reversed once activated.
Primary source: gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm056510