Schemes could be overpaying tax on DB surplus refunds, advisers say

By The Financial Edition · 26 October 2026 · 10:42 GMT · Professional Pensions · 1 min read

Photograph: Diego Delso, delso.photo · CC BY-SA · sector illustration, not event evidence

Tax Mismatch Confusion

According to Professional Pensions, advisers state that pension schemes could be overpaying tax on surplus payments made to employers. Professional Pensions reports that growing confusion among trustees is driven by a mismatch between the interpretation of HM Revenue and Customs' position set out in pension schemes newsletter 163 from October 2024 and the actual legislation.

Trustee Reluctance

Professional Pensions notes that despite the discrepancies between official guidance and statutory rules, trustees remain unwilling to mount a challenge against the current HMRC position.

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