HMRC refunds £4,000 to 12,500 UK pensioners overtaxed on withdrawals

HMRC repaid £50.3 million to over 12,500 pensioners between April and June 2026 after overtaxing flexible pension withdrawals, with average refunds around £4,000. Affected savers were placed on emergency tax codes assuming one-off withdrawals were monthly income. Pensioners are urged to check records and claim refunds using P55, P53Z, or P50Z forms depending on withdrawal and income circumstances. P55 applies to partial withdrawals; P53Z for fully emptied pensions with other taxable income; P50Z for emptied pensions without such income.