Tax  

How to help clients affected by the MPAA

  • To learn how the MPAA works
  • To see what triggers the MPAA
  • To understand the importance of a client's overall situation relating to the MPAA
CPD
Approx.30min

The MPAA should be factored into the advice process but do not always try to avoid breaching it. Tax is only bad where the net benefit is not worth it.

Les Cameron is head of technical at Prudential

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Key Points

The reduction to the money purchase annual allowance (MPAA) is going ahead

Future money purchase contributions are restricted to £4,000

Avoiding a MPAA charge might not be a good thing

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. How much does the new Money Purchase Annual Allowance restrict contributions to?

  2. Which of the following is NOT an MPAA trigger?

  3. A flexible annuity is NOT a trigger for MPAA, true or false?

  4. Taking dependent benefits is a trigger for MPAA, true or false?

  5. When might someone who has flexibly accessed their benefits be triggering the MPAA?

  6. Once employer matching stops, everyone could invest their money somewhere better, true or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To learn how the MPAA works
  • To see what triggers the MPAA
  • To understand the importance of a client's overall situation relating to the MPAA

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