As expected, legislation has now been passed to reduce the money purchase annual allowance from £10,000 to £4,000 for the current tax year. 

The legislation also provides for an income tax exemption for up to £500 worth of employer-arranged pensions advice.  The legislation for both these measures was due to have been enacted earlier, but was postponed due to the General Election.

Trustees who wish to pay an annual allowance charge on behalf of the member where there is no legal obligation to do so under the "scheme pays" provisions should check whether their scheme rules allow this, as a rule amendment will often be required in such circumstances