Money Purchase Annual Allowance (MPAA) limit
If you choose to flexibly access any defined contribution (DC) pension savings from an external arrangement whilst you are still an active member of APS, you must tell us straight away.
Once you have flexibly accessed DC benefits for the first time (from a flexi access drawdown arrangement for example), the MPAA will apply to any subsequent DC savings you make, including any AVCs saved within APS (plus the 10% SmartAVC uplift if you save SmartAVCs).
The MPAA has been reduced from £10,000 to £4,000 for the tax year starting on 6 April 2017. If the MPAA applies to you and your DC savings exceed the MPAA in any tax year, you will have to pay a tax charge. The AA for your defined benefit (DB) pension savings, such as your APS pension, will also be reduced to £36,000.
Unlike the AA, any unused MPAA cannot be carried forward to later tax years.
You can find more information about the MPAA on the HMRC website at: www.hmrc.gov.uk/manuals/ptmanual/ptm056500.htm