Standalone Lump Sum Payment

amelia1983 · April 4

Hi. We have a client who took a Standalone lump sum payment in November 2023 with a total value of £42,223 but only £39,987 was paid tax-free. I assume this was due to the value of the TFC being frozen in April 23. As he has had some of the payment being paid as taxable lumpsum/income, does this mean he has triggered the MPAA? I cannot find anything that confirms this.

Thanks

les_cameron · April 4

You're not looking in the right places then!!!

Your answer is no. You'll not find much telling you what doesn't trigger the MPAA as the law tells you what does. So if it's not something that does it doesn't.

Here's the triggers (followed by some common things that don't which we get asked about a lot..).

https://www.mandg.com/wealth/adviser-services/tech-matters/pensions/annual-allowance/money-purchase-annual-allowance#mpaa-triggers

Standalone Lump Sum Payment

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