Taxman wrongly punishing people for dipping into their pension pots

AS MANY as 200,000 savers are thought to have paid too much tax while using the pension freedoms made available to savers over age 55, The Daily Telegraph can reveal.

In many cases, savers will be unaware of overpaying and HMRC will not tell them, acting only when a claim is made.

Experts are calling for an urgent overhaul of tax procedures in light of the pension rules, which came into force in 2015.

The overpayments arise because one-off withdrawals are treated as if h h fi f l hl

‘This is unfair to savers and is undoing the benefit of the pensions freedoms’