I’m looking for some pointers on MPAA triggers, if anyone knows anything about them?
Thanks in advance.
Thanks but I’ve trawled most of the websites and they don’t answer my specific question.
My concern is that most websites say the same thing as the link above but the nice lady at HMRC, who admitted this was her first query on this topic, said something totally opposite and we all know how unforgiving they are when they think you owe them money!
Last edited by alanm_3; 22nd January 2019 at 09:55. Reason: More detail.
I think you need to be more specific then. I can’t glean what exactly you’re asking. Specifically what did the lady at hmrc say?
Have you accessed a money purchase scheme already and did you take anything as income (or an amount in excess of the 25% PCLS entitlement?
Ok, here’s the background.
Last year I was informed that the pension trustees of an ex-employer, which had ceased to exist, had managed to obtain some money from somewhere and would be paying out a sum to elegible ex-employees.
Fast forward to December and everything was finalised and I got a sum (not a huge sum in the big scheme of things), so I decided to cash in the entire sum, which consisted of the 25% tax free lump sum and a taxable element. Having received the money and paid tax, I then got a letter from the pension provider (Aviva), to tell me that this had triggered an MPAA event and my tax-free pension contribution limit had been reduced from £40,000 to £4,000. This seems to apply to any subsequent years and not just the tax year in which the event is triggered.
Given that I’m in a “defined contribution” scheme with my current employer, I assumed this was correct, however in speaking to HMRC yesterday, they told me this wasn’t the case and my tax liability would be reduced BY £4,000 and not TO £4,000, which seems, from the websites I look at, is the situation for a “defined benefits” pension scheme and not on a “defined contribution” scheme.
This may help
https://adviser.royallondon.com/tech...-and-the-mpaa/
Sadly that link only confirms my thoughts on this, which seems to be at odds with what HMRC told me yesterday.
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