Reclaim Overpaid Tax on Pension Withdrawals from HMRC

At Bosworth Wealth Management, we have many clients that struggle to reclaim overpaid tax on pension withdrawals. As your financial adviser, we have a handy guide to the process and ensure you maximise your tax benefits.

✅ Benefits of Reclaiming Tax on Pension Withdrawals

Increased Pension Savings – More money goes into your pension pot, helping you build a more secure financial future.
Tax Relief – Reduce your overall tax liability based on your income tax rate.
Boost Your Retirement Funds – Significantly enhance your retirement savings for a more comfortable future.

🧾 How to Reclaim Tax on Pension Withdrawals

When you make a pension withdrawal—especially a one-off lump sum—you may be taxed at an emergency rate, often resulting in an overpayment. Fortunately, HMRC provides a straightforward way to reclaim this tax.

When Can You Reclaim?

You can reclaim tax if:

You’ve made a one-off withdrawal from your pension (not regular income).
You’ve not emptied your pension pot.
Your pension provider cannot refund the overpaid tax directly.

Which HMRC Form Should You Use?

Scenario	Form	Link
You’ve taken part of your pension pot and will not take regular payments	P55	https://www.gov.uk/claim-tax-refund/youve-taken-a-small-cash-sum-from-your-pension
You’ve taken your entire pension pot and are still working	P53Z	https://www.gov.uk/claim-tax-refund/youve-taken-your-whole-pension-and-are-still-working
You’ve taken your entire pension pot and have stopped working	P50Z	https://www.gov.uk/claim-tax-refund/youve-taken-your-whole-pension-and-have-stopped-working

These forms can be submitted online or by post. You’ll need details like your pension provider’s PAYE reference, expected income for the tax year, and any other taxable income.