{"id":401091,"date":"2025-09-05T22:34:11","date_gmt":"2025-09-05T22:34:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/401091\/"},"modified":"2025-09-05T22:34:11","modified_gmt":"2025-09-05T22:34:11","slug":"hmrc-reimbursing-state-pensioners-and-sending-them-3332-payment","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/401091\/","title":{"rendered":"HMRC reimbursing state pensioners and sending them \u00a33,332 payment"},"content":{"rendered":"

HMRC is reimbursing 60,000 retirees up to \u00a3100,000 after overcharging tax-free lump sums<\/a>. The average refund in 2023-24 was \u00a33,332, with a handful of pensioners awarded sums exceeding \u00a3100,000.<\/p>\n

Pensioners are allowed to withdraw as much as 25 per cent of their pot tax-free upon retirement, up to a cap of \u00a3268,000. Royal London data, which was found through a Freedom of Information request, shows that the number of claims increased by 20 per cent compared with 2022-23.<\/p>\n

Clare Moffat, of Royal London, said<\/a>: \u201cIt\u2019s incredible to think that some people withdrawing from their pension for the first time were entitled to emergency tax refunds in excess of \u00a3100,000.<\/p>\n

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READ MORE:<\/b> NS&I tells 22 million Premium Bonds holders to ‘check’<\/a><\/p>\n

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\u201cNot only do these taxes usually come as a massive shock, the unexpected tax amount can also scupper people\u2019s carefully laid plans.\u201d<\/p>\n

Around 11,700 pensioners claimed back \u00a35,000 or more, including 2,400 who were given refunds in excess of \u00a310,000. The average value of the top 100 claims was \u00a338,465.<\/p>\n

The top 25 refunds averaged \u00a3106,897 in value. Ms Moffat warned: \u201cLooming inheritance tax means more and more people are considering dipping into their pension pots while they are alive for the purpose of making large lifetime gifts to loved ones, which are exempt from inheritance tax if the giver survives for seven years after making the gift.<\/p>\n

\u201cA rise in large lump sum withdrawals will likely mean an even greater spike in emergency taxes on those withdrawals. So the problem of emergency taxes isn\u2019t going away, and there\u2019s a chance it could get worse.\u201d<\/p>\n

A HMRC spokesman said in a statement: \u201cUltimately, nobody overpays tax as a result of taking advantage of pension flexibility.<\/p>\n

\u201cWe will repay anyone who pays too much because they\u2019re on an emergency tax code and individuals can claim a repayment much earlier if they wish.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"HMRC is reimbursing 60,000 retirees up to \u00a3100,000 after overcharging tax-free lump sums. The average refund in 2023-24…\n","protected":false},"author":2,"featured_media":401092,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,138364,474,138362,1016,138363,3126,2499,16,15],"class_list":{"0":"post-401091","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-clare-moffat","10":"tag-finance","11":"tag-freedom-of-information-request","12":"tag-hmrc","13":"tag-lump-sums","14":"tag-pensioners","15":"tag-personal-finance","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115154076698274032","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/401091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=401091"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/401091\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/401092"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=401091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=401091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=401091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}