The government has confirmed it will go ahead with the proposal to reduce the money purchase annual allowance from £10,000 to £4,000 with effect from April 2017. It consulted between December 2016 and February 2017 on the proposal, which will affect up to 3% of savers over age 55.
The government has confirmed it will go ahead with the proposal to reduce the money purchase annual allowance from £10,000 to £4,000 with effect from April 2017. It consulted between December 2016 and February 2017 on the proposal, which will affect up to 3% of savers over age 55. The government states that the consultation did not produce any evidence that a reduction in the annual allowance to £4,000 would impact on the successful rollout of automatic enrolment, or have a disproportionate effect on different groups.
Legislation for the change is contained in clause 16 of Finance Bill 2017.
The government has confirmed it will go ahead with the proposal to reduce the money purchase annual allowance from £10,000 to £4,000 with effect from April 2017. It consulted between December 2016 and February 2017 on the proposal, which will affect up to 3% of savers over age 55.
The government has confirmed it will go ahead with the proposal to reduce the money purchase annual allowance from £10,000 to £4,000 with effect from April 2017. It consulted between December 2016 and February 2017 on the proposal, which will affect up to 3% of savers over age 55. The government states that the consultation did not produce any evidence that a reduction in the annual allowance to £4,000 would impact on the successful rollout of automatic enrolment, or have a disproportionate effect on different groups.
Legislation for the change is contained in clause 16 of Finance Bill 2017.
