# What is the Money Purchase Annual Allowance (MPAA)?

> Quick answer · Last updated 6 April 2026

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## In short

A reduced pension annual allowance of £10,000 that applies once you have flexibly accessed a defined-contribution pension — for example through drawdown or a UFPLS lump sum.

The MPAA cuts your annual allowance for further defined-contribution contributions from the standard £60,000 down to £10,000. It was raised from £4,000 to £10,000 on 6 April 2023.

It is triggered by taking taxable income from drawdown, taking a UFPLS (uncrystallised funds pension lump sum), exceeding the cap on a capped-drawdown plan, or buying certain flexible annuities. Taking only the 25% tax-free element does not trigger it.

Once triggered, the MPAA cannot be reversed. If you might want to keep contributing meaningfully, take regulated advice before flexibly accessing your pension.

## Related

- [Pensions & retirement guide](https://moneyguide.org.uk/pensions/)

## Primary source

gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm056510

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.