Since pension freedoms came into force in April 2015 more than £372 million has been reclaimed by more than 150,000 savers. The average amount being claimed for a refund was £2,000.
How does this tax overpayment happen?
When someone takes out a lump sum from their pension pot, only 25% is tax-free. The technical term for this is an “uncrystallised lump sum”. If the pension provider has a tax code for their client they will apply this and deduct the tax. When no tax code record is held HMRC will issue an emergency tax code.
If the pensioner’s total annual income is in a lower tax band than the emergency code assumed, they should be due, the overpaid tax back. It is then up to the pensioner to reclaim the money using a P55 form from HMRC. Refunds are normally made within a month.
How Anstee & Co can help you with your pension pot.
We are a firm of Independent Financial Advisers (IFA’s). This means that we offer unbiased pension and financial advice. We will look into all the financial options that are available to you from the “whole of market”. We will be able to advise you on the most tax efficient way for you withdrawing funds from your pension pot
The initial meeting with the financial adviser is free and without obligation. Meetings can be arranged at a time and location that is convenient for you. This may be at your home or place of work. We have offices located at-
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Birmingham, Snow Hill Queensway
- London, Pall Mall
In addition, our independent financial planners live and make use of meeting rooms in-
- Market Harborough, Leicestershire
- Bedford, Bedfordshire
- Droitwich, Worcestershire
- Towcester, Northampton and Wellingborough in Northamptonshire.
Information in this article is for information purposes only and does not constitute advice. No action should be taken based on this information alone.