HMRC data shows pension freedoms over-taxation bill nears £1bn

Some £45m was repaid to individuals in the final quarter of 2022 alone

Jonathan Stapleton
clock • 2 min read

Savers have reclaimed £970m in over-taxation on pension withdrawals since 2015, HM Revenue & Customs (HMRC) data reveals.

In its January 2023 pension schemes newsletter, HMRC said more than £45m was repaid to 14,335 people overtaxed on pension withdrawals in October, November and December 2022. AJ Bell said its analysis showed this was the highest quarter four figure on record and third highest of any three-month period since April 2015. The investment platform provider said the average reclaim in Q4 2022 was £3,141, down slightly versus the previous quarter - something it said suggested more people are accessing smaller retirement pots. AJ Bell head of retirement policy Tom Selby said: "As surging in...

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