MPAA redection removed from Finance Bill

Trustees Agenda posted on 25 April, 2017

Following the decision to call a snap general election in June, the Government has tabled an amendment to the Finance Bill in an attempt to ensure the Bill is passed before Parliament is dissolved on 3 May.

The amendment removes the clause which would have reduced the money purchase annual allowance from £10,000 to £4,000 from 6 April 2017.

Its removal is likely to cause confusion for schemes, savers and advisers as advice will have been given, and taxes may already have been collected on the expectation that the policy would change.

The Government has indicated that the provisions dropped from the Bill will be legislated for at the earliest opportunity in the new Parliament, so it seems to be the intention that this change will still be made at some point.