Taking AVC at 55

Can someone please clarify as to why I have to pay tax twice on taking my AVC, once at source from the provider and again as the one off payments are taxed as income

Hi 

Additonal voluntary contributions qualify for tax relief, as long as the payments keep you within the pension threshold.  
The pension provider will claim tax relief from HMRC and add this to your pension pot and if you are a higher or additional rate taxpayer, you can claim additional relief through pay as you earn or a self assessment tax return.  
Payments from a pension are taxable as income, as the payments into the pension are tax free.

Thank you

I have paid tax on the avc at source from the provider at circa 30% with 25% tax free. When the balance has been paid HMRC have taxed me again including on the 25% tax free as income. Surely this is not the way the savings is designed. As an example if the lump sum was £10k I have paid £2.1k at source leaving 7.9k and then 20/40% on the balance as income so another £1.5k/3.0k leaving tax paid as either 3.6k or 5.1k and I have not had any tax free. Any suggestions or explanation please?

Hi Smb1968,
The pension company only notify HMRC of the taxable amount and will show th tax deducted on that.
If they have not done this you will need to contact the pension company.
Thank you.