The Treasury will drastically reduce the Money Purchase Annual Allowance (MPAA) from £10,000 to £4,000 from today (6 April 2017), the start of the new tax year despite strong opposition from Financial Planners and the industry.

The Chancellor has come under fire again today over another of his Budget proposals, as critics attack his “wholly ill-conceived and utterly misguided thinking on QROPS”.

Chancellor Philip Hammond is to impose a 25% tax charge on pension transfers to QROPS pension schemes from tomorrow (9 March).

In a surprise move in his Autumn Statement, Chancellor Philip Hammond announced he would cut the money purchase annual allowance from £10,000 to £4,000 from April 2017 to stem the use of the facility to provide “double pension tax relief.”