HMRC overhauls pension withdrawal tax system after ten-year campaign

Former pensions minister welcomes ‘victory’ ending system which overcharged pensioners by £1.3bn

Jasmine Urquhart
clock • 4 min read
HMRC overhauls pension withdrawal tax system after ten-year campaign

An HM Revenue & Customs (HMRC) system that over-taxed pensioners who took their pension money out following the introduction of pension freedoms has been overhauled after a ten-year campaign.

The HMRC "emergency tax codes" system, which was put in place following the introduction of pension freedoms in 2015, has overcharged pensioners by £1.3bn in the last decade, and meant more than 47...

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Jasmine Urquhart
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Jasmine Urquhart

Senior Correspondent at Professional Pensions

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