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flag HMRC to end overtaxing of pension withdrawals, saving pensioners from £1.3 billion in refunds.

flag HMRC will end the practice of overtaxing pension withdrawals and forcing savers to claim refunds, starting April 2025. flag This change, praised by former Pensions Minister Steve Webb, involves replacing 'emergency' tax codes with regular ones to ensure accurate real-time tax deductions, reducing the need for refunds or year-end reconciliations. flag Since 2015, the old system has overcharged pensioners by £1.3 billion.

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