Pension tax refunds approach £1.2 billion - are you owed money from a shock bill?

HMRC has refunded almost £1.2 billion in overpaid tax since pension freedom rules were introduced. Here is how retirees can avoid an unexpected bill.

Shocked couple looking at bill
(Image credit: Getty Images)

Savers have been refunded almost £1.2 billion in overpaid tax since pension freedom rules were introduced, government figures show.

A quirk in the tax rules when it comes to accessing retirement funds under pension freedom rules means that savers can end up paying too much to HM Revenue and Customers (HMRC) when making pension withdrawals.

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.