Thousands of savers who overpaid tax on pension withdrawals were repaid £38mn in the final quarter of last year, according to new data which prompted calls for reform of “unacceptable” tax rules.
In the three months until the end of December last year, a total of £38.8mn was repaid to around 13,000 claimants who had overpaid tax when first accessing their pensions, according to new data from HM Revenue & Customs.
The issue of overpaying tax affects over-55s accessing a defined contribution pension for the first time.
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