Reducing the money purchase annual allowance (MPAA)

The LITRG strongly urges the government to think about savings for retirement coherently; under the current proposal those who save up in a Lifetime ISA rather than a pension could benefit from ‘tax relief’ until age 50 and then again if they were to access those funds at age 60 and put them into a pension scheme, thus obtaining tax relief on the same savings twice. We also believe that lowering the MPAA to £4,000 from £10,000 could risk adversely affecting those on lower incomes.