Pension drawdown glossary
When you first take taxable money from a pension, the provider often has no up-to-date tax code and applies an emergency code on a Month 1 basis, which can mean paying too much tax at first. You can reclaim it from HMRC with form P55, P53Z or P50Z, or it is corrected later in the tax year.
Source: HMRC PAYE Manual PAYE94055: flexibly accessed pension payments · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.