But there is also a lack of HMRC data about how many people are affected as the tax authority is not able to provide figures on over payments as they are grouped with the usual annual allowance limit numbers. A freedom of information request by pension giant Aegon found that HMRC had no information on how many pension savers were exposed to MPAA.

Aegon is calling for HMRC record keeping to be enhanced to show the extent of harm being caused, while it would also like to see a government policy review and a potential increase in the MPAA limit from £4,000 to £10,000.

HMRC said: ‘Information on money purchase annual allowance (MPAA) breaches cannot be separated from the annual allowance on the self assessment form. This is because in form SA101, on page 10, there is only one box (box 10) which records the amount by which pension savings exceed an individual’s MPAA, the annual allowance or tapered annual allowance. The actual annual allowancee they face is not required.’

Tho