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A major rule change is coming for anyone taking cash from their pension ahead of the Labour Party Autumn Budget on November 26. Pension withdrawals rose 36 per cent in 2024/25 amid speculation that the amount of tax-free cash you can take out of your pension could be cut.

HMRC and the Labour Party government have confirmed that when a person takes a lump sum from their pension they cannot reverse the decision.

It said: “Once lump sums are paid, the associated tax consequences (including the use of the individual’s lump sum allowance and lump sum death benefit allowance) cannot be undone, even if the payment is returned or cancellation rights are exercised.”

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