Money Purchase Annual Allowance (MPAA) limit

If you choose to flexibly access any defined contribution (DC) pension savings from an external arrangement, the MPAA will apply to any subsequent DC savings you make.

The MPAA increased from £4,000 to £10,000 for the tax year starting on 6 April 2023. If the MPAA applies, the AA for any defined benefit (DB) pension savings will also be reduced to £50,000.

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.