Overview
- Official figures show £48,560,205 was repaid between July and September 2025, with the average refund at £3,539.
- HMRC received 13,500 reclaim forms in the quarter, up 11% from 12,331 a year earlier, as total repayments rose from about £44 million to more than £48.5 million.
- Large or first withdrawals from defined contribution or personal pensions can be taxed on an emergency ‘M1’ basis that assumes the amount repeats monthly.
- HMRC introduced automatic tax‑code updates for new private pension recipients from April 2025, yet advisers say one‑off lump sums can still be overtaxed and suggest smaller or notional first withdrawals.
- Overpaid tax can be reclaimed via HMRC using forms P53Z, P50Z or P55 depending on circumstances, and HMRC says repayments are available and can typically be processed within about 30 days.