‘Scandal’ of tax fees on pension pots

THE charging of pension pot withdrawals under emergency tax codes has been branded a “scandal”.

HMRC had to refund more than £26million in three months to 10,000 people who paid too much tax on lump sums.

Ex-pensions minister Steve Webb, a director of policy at Royal London, said: “The way pension withdrawals are taxed is little short of a scandal. HMRC’s approach is tax first and ask questions later, and that must stop.”

Royal London says HMRC should instead take only standard rate tax followed by the usual end of year process.