MPAA is triggered and subsequent pension input into a money purchase scheme is less than or equal to £4,000

• The annual allowance is £40,000 in the tax year and it is possible to use carry forward but only for DB pension input
• Any unused money purchase annual allowance cannot be carried forward

MPAA is triggered and subsequent pension input into a money purchase scheme is greater than £4,000

• As well as their MPAA, a member who has flexibly accessed their pension savings also has an alternative annual allowance. This can only be used for pension input in respect of DB pension input
• The annual allowance for money purchase schemes is £4,000
• The annual allowance for the tax year with respect to any DB schemes if £36,000 also known as the alternative annual allowance, ie it is annual allowance minus £4,000.
• It is possible to use carry forward to increase the alternative annual allowance
• It is not possible to use carry forward to increase the MPAA
• Any pension savings tested against the MPAA are not tested against the alternative annual allowance

If the input into a DC pension exceeds the MPAA, we must establish the chargeable amount which is the higher of the default chargeable amount or the alternative chargeable amount.