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Posted Sun, 24 Dec 2023 08:52:54 GMT by alfo926
In 2025/26 I expect to have employment of around £9,000 for the year. I will also need to take around £30,000 from my defined contribution pension as an UFPLS withdrawal in May 2025, in order to contribute towards a house purchase. Is there any way to avoid my pension provider withholding unnecessary tax from the withdrawal, as reclaiming that tax from HMRC might impact the availability of the funds for the purchase?
Posted Mon, 08 Jan 2024 08:52:17 GMT by HMRC Admin 19 Response
Hi,

No, based on current guidance, emergancy tax will be deducted on the pension withdrawal.

We cannot comment on future events as legislation may change.

Thank you.
Posted Mon, 08 Jan 2024 09:00:31 GMT by alfo926
Thank you for your reply. Are you able to recommend a course of action that would result in me being able to reclaim the unnecessary taxation quickly? Can I make the withdrawal on 6th April, for example, and then immediately request a refund of the overpaid tax? If so, what is the process for doing this, please?
Posted Fri, 12 Jan 2024 13:37:11 GMT by HMRC Admin 20 Response
Hi alfo926,
The pension would be automatically taxed on withdrawal and the issue of any refund depends on any continuing sources of income.
Please refer to:- Claim a tax refund when you've taken a small pension lump sum (P53)
Thank you.
 

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