Overview

• Freedom of information data show about 60,000 pension tax reclaims in 2023–24, a 20% rise year on year, with average refunds of £3,342.
• Roughly 11,700 savers reclaimed £5,000 or more, including 2,400 above £10,000, and the largest 25 refunds averaged about £106,900.
• Overcharges occur when emergency PAYE is applied to first or irregular lump-sum withdrawals and the payment is treated as if it recurs monthly for the rest of the tax year.
• HMRC says no one ultimately overpays, has refunded about £1.4bn since 2015, and from April 2025 began auto-updating tax codes for new private pensions to speed corrections.
• Savers can claim faster using forms P55, P53Z or P50Z with a stated 30‑day target for processing, and experts warn withdrawals may increase ahead of 2027 inheritance‑tax changes.