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What triggers the Money Purchase Annual Allowance?

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In short: Taking flexible taxable income from a defined contribution pension — including flexi-access drawdown withdrawals and taxable UFPLS — reduces your annual allowance for future pension contributions to £10,000.

Last reviewed:

Reviewed by Kaiser Khan

Taking only tax-free cash does not usually trigger MPAA.

Capped drawdown holders who remain within old caps may not trigger MPAA — check with your scheme.

See MPAA answer and drawdown income guide.

Primary source: gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm057000

Part of our Pensions & retirement

This quick answer sits inside our wider pensions & retirement hub — with sub-guides, calculators and step-by-step explainers on the same topic.

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