Hundreds of savers have been landed with tax bills of more than £100,000 after emptying their pensions early, new figures show. The rush to pull money out followed a government decision to bring unused pension savings within inheritance tax from April 2027. Many who acted to dodge that future charge triggered a large income tax bill straight away.
The pattern comes from an analysis of Financial Conduct Authority data by the pension firm Standard Life. It found a clear jump in very large withdrawals in the months after Chancellor Rachel Reeves announced the change.
