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The occurrence of emergency tax on pension income is typically due to a lack of current tax information. When you make your first pension withdrawal, HMRC might not have your latest tax code on file, particularly if you’ve recently retired, changed jobs, or haven’t provided a recent P45 form.
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Note: This page is for information purposes only and should not be considered as financial advice. Always consult an Independent Financial Adviser for personalised financial advice tailored to your individual circumstances.