Partial Annuity - MPAA

GolfPutt21 · March 27

Hi all,

I am sure this is an easy answer but;

A client wants to use a portion of their pension pot to take out an enhanced lifetime annuity, so they have taken TFC and use the remainder to purchase an enhanced lifetime annuity increasing at 3% each year. Does this trigger the MPAA?

Thanks

Nath · March 27

No this doesn't.

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/money-purchase-annual-allowance/

les_cameron · March 27

Potentially, but unlikely.

If it can only vary in a way that was allowed prior to pension freedoms then it's not an MPAA trigger.

Not sure I've seen a post freedoms annuity that varies in a way that was not allowed pre freedoms
but there must be one somewhere I guess.

Partial Annuity - MPAA

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