Pensioners can't reverse tax-free lump sum withdrawals, despite budget fears.

Pensioners who quickly withdrew up to 25% of their pension pots tax-free before the budget now cannot reverse their decisions, according to HMRC. Despite fears of rule changes, Chancellor Rachel Reeves kept the current rules, allowing tax-free withdrawals up to £268,275. HMRC states that the tax-free lump sums cannot be returned, and providers are advised not to allow refunds, potentially leading to additional charges for some savers.

3 months ago
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