Reduction in Money Purchase Annual Allowance
July 26th, 2017
HM Treasury confirms that all legislation originally planned to come into force from 6 April 2017 still will be when it is enacted.
In the written statement – HCWS47 made by Mel Stride, Financial Secretary to the Treasury and in a news story on Gov.uk it has been confirmed that where policies we announced to have started at the beginning of the 2017/18 tax year there will be no changes to these plans.
We read this to mean that policies such as the reduction in the money purchase annual allowance from 10,000 to 4,000 will be applicable from 6/4/2017 for those who have triggered the MPAA although it isnt specifically mentioned in the statement.
The statement says The Government confirms that intention. It expects to introduce a Finance Bill as soon as possible after the summer recess containing the withdrawn provisions. Where policies have been announced as applying from the start of the 2017-18 tax year or other point before the introduction of the forthcoming Finance Bill, there is no change of policy and these dates of application will be retained. Those affected by the provisions should continue to assume that they will apply as originally announced.
The changes still need to make their way through Parliament so although this is the intention there is still a chance that the legislation could change.