Warning to savers over 'emergency' tax on pension withdrawals

According to the group, those who are overtaxed may have to wait at least 12 months to claim back their money or could need to contact HM Revenue & Customs (HMRC) to ask for it back. The problem can affect anyone who takes a taxable pension freedoms payment from the age of 55, it added - either through drawdown or via an uncrystallised funds pension lump sum or 'UFPLS' withdrawal. AJ Bell explained that, in these circumstances, HMRC requires pension providers to use an emergency ‘Month 1' tax code, meaning the Revenue only gives one-twelfth of the usual tax allowances available on the...