HM Revenue and Customs returned approximately £188m to more than 54,000 pension savers during the 2025/26 financial year. The refunds were issued after the tax authority identified that it had deducted excessive amounts of tax from their pension withdrawals.
The scale of the repayments highlights the importance of accurate tax administration for people managing their retirement income. Savers who have overpaid tax on pension withdrawals may be entitled to similar refunds.