US EditionHMRC issues refunds to thousands of pensioners in UK
HM Revenue and Customs refunded over 1.4 billion since 2015 to 60,000 pensioners overcharged due to emergency tax rates on pension withdrawals.
- Around 60,000 UK pension savers claimed tax refunds during the 2023-24 tax year amid pension withdrawal tax issues.
- This rise follows the 2015 introduction of pension freedoms, which allowed over-55s flexible options on defined contribution pensions, including a 25% tax-free lump sum.
- HMRC figures show average refunds increased by £280 to £3,342, with about 11,700 pensioners reclaiming £5,000 or more and 2,400 receiving over £10,000 in refunds.
- An HMRC spokesperson confirmed that individuals do not end up paying more tax through using pension flexibility, and any overpayments caused by emergency tax codes will be refunded more quickly than before.
- Experts warn that unused pension funds will face inheritance tax from 2027 and that rising lump-sum withdrawals could increase emergency tax cases among pensioners.
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The Northern Echo+19 Reposted by 19 other sources
HMRC issues refunds to thousands of pensioners in UK - how to apply for yours
HMRC has issued refunds to thousands of pensioners after being overcharged tax on their pension withdrawals, new data reveals
·County Durham, United Kingdom
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Total News Sources36
Leaning Left1Leaning Right2Center23Last UpdatedBias Distribution88% Center
Bias Distribution
- 88% of the sources are Center
88% Center
C 88%
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