More than £50 million in overpaid pensions tax repaid by HMRC

25 Jul 2023

HMRC repaid £56.2 million to individuals who accessed their pension pots in the second quarter of 2023.

According to HMRC, 15,839 pension flexibility claim forms were processed between April 2023 and June 2023. It has repaid £56.2 million to savers who were charged emergency tax when they accessed their pension pot.

The latest figure is an increase of almost £8 million when compared to the first quarter of 2023.

Pension freedom rules allow savers aged 55 and over to access their pension pots. However, withdrawals above the 25% tax-free amount are taxable at a saver's marginal rate of income tax.

Commenting on the data, a spokesperson for HMRC said: 'Nobody overpays tax as a result of taking advantage of pension flexibility.

'We will automatically repay anyone who pays too much because they're on an emergency tax code. Individuals can claim back any overpayment earlier if they wish.'