More than £50million was reclaimed in tax on pension withdrawals between April and June 2026, with the average amount back worth £4,000 – here is how to check if you are due a refund
Thousands of pension savers are being urged to check if they are due a tax refund from HMRC.
Latest figures show more than £50million was reclaimed in tax on pension withdrawals between April and June 2026. There were more than 12,500 claims during this period, with an average repayment of £4,000 per person.
You may be due a refund if you were charged emergency tax after making a withdrawal from your pension for the first time. This can happen if HMRC treats your first pension withdrawal as if it will continue to be paid each month – even if you do not make any further withdrawals that tax year.
You can normally withdraw up to 25% of your pension tax-free from the age of 55, and then you’re charged your normal income tax rate on the remaining 75%. Adam Cole, retirement specialist at Quilter, said: “The average repayment stands at almost £4,000, not an insignificant amount of money, and is money that could be put to work sooner and to better use.
“Instead, retirees are being left out of pocket while they wait for HMRC to return their own money, a process that could and should be quicker or avoided altogether. All of this is happening at a time when pressures are rising on retirees, despite the triple lock.“
How to claim back overpaid pensions tax
You do not need to wait for HMRC to refund you. You can claim back the difference between how much you paid in emergency tax, and how much you should have paid with your normal tax rate, by filling out a form online. You will need to use one of the following three forms:
- If you’ve emptied your pot by flexibly accessing your pension and are still working or receiving benefits, you should fill out form P53Z
- If you’ve emptied your pot by flexibly accessing your pension and aren’t working or receiving benefits, you should fill out form P50Z
- If you’ve only flexibly accessed part of your pension pot then use form P55
Alternatively, you can wait for HMRC to repay you at the end of the tax year. Mr Cole said: “Until it better reflects how people actually access their money in retirement, thousands of savers will continue to face unnecessary complexity and cashflow disruption.
“In the meantime, careful planning and professional advice remain essential to avoid paying too much tax at the point of withdrawal.”
