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Pension Lump Sums – Check Your Tax!

Ten Facts You Might Not Know About Stamp Duty

More and more people are now taking lump sum payments from their pension funds, but these payments are often taxed incorrectly, with the pension companies being told by HMRC to deduct too much tax.

The recipients may be unaware that they have been over taxed, or if they are, they may then face several months before they can claim a refund.

Steve Webb, the director of policy at Royal London was outraged by HMRC’s over-taxing, stating that more than £26m had been over-taxed in just three months.

If you are planning to draw down a pension lump sum, it would be worth taking professional advice to make sure you pay the right amount of tax.