Britons reclaim £858m in overpaid emergency pensions tax

Britons reclaim £858m in overpaid emergency pensions tax

Some pensioners making use of the freedoms are being unfairly hit with a big tax bill (PA Wire) Pensioners have recovered more than £22m from HMRC in the first three months of 2022 alone, after being charged millions in emergency tax, according to the Revenue’s own data.

But the latest figures represent only a fraction of the £858m refunded due to this kind of short-term tax on pension pots.

Such extraordinary overtaxation happens when people decide to take money from their retirement savings for the first time.Under so-called “pension freedoms” introduced in 2015, Britons were given greater flexibility to choose how […]

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