Tax windfall for Treasury from pension changes

The Chancellor could receive a much larger tax windfall this year than expected from people using new freedoms to cash in their pension savings.

Since April, those aged 55 and over have been able to take their pension pot in cash, rather than buy an annuity to provide a retirement income.

Taking pension savings in one go could lead to a significant income tax bill.

It forecast an estimated £320m would have landed in the Treasury's coffers in 2015-16.

Simon Gompertz reports.