Pension savers reclaim £50m in emergency tax overpayments

HMRC repaid over £50m in emergency tax on pension withdrawals between April and June 2026, with average refund about £4,000; savers urged to check eligibility. More than 12,500 claims were made. Emergency tax occurs when HMRC treats a first withdrawal as monthly, even if no further withdrawals. Normally 25% is tax-free and the rest is taxed at the saver's usual rate. Savers can claim online using forms P53Z, P50Z, or P55 depending on circumstances, or wait for HMRC to repay at year end.