- M
- MPAA
- ‘Money purchase annual allowance’. This applies when you take income from a defined contribution scheme. Once you trigger the MPAA, your annual allowance from defined contribution schemes is reduced to £10,000. Paying more than this in a tax year will trigger a tax charge.
- Marginal tax rate
- The rate of tax you pay on the income you receive over and above the personal allowance. For example, if you earn £70,000, you will have a marginal tax rate of 40% (correct in the 2025/26 tax year).
- Market value
- The price an investment might achieve when placed for sale on an exchange or other sales platform.
- Member
- A person who has been admitted to membership of a pension scheme and is entitled to benefits under the scheme. This includes active members and individuals who have benefits from a scheme but are not actively a member of the scheme, for example, they had a company pension and moved to a new employer.
Is there jargon we use that you don’t fully understand? Please email us at info@ifglpensions.com and we will add the word to our Jargon Buster.