Steve Webb: HMRC tax code stance moving in right direction but still work to do

Since 2015, pension freedoms have given people a lot more choice about how they access their defined contribution (DC) pension pots.   But with that choice has come considerable complexity about the way in which those pension withdrawals are taxed.   In particular, the process of imposing an ‘emergency' tax code on the first withdrawal has led hundreds of thousands of people to be over-taxed over the last decade.   From an HM Revenue & Customs (HMRC) perspective, of course, the system is perfectly reasonable.   When someone first accesses their DC pension pot (beyond any tax-fre...