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
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