Pension fund withdrawal tax calculator

Tempting as it is for your clients to take their pension fund as cash, beware the sting in the tail – while they can normally take a 25% tax-free lump sum, remember they’ll pay tax on the rest (at a rate linked to all income received in that year).

Our calculator shows them the amount and percentage rate of income tax payable on their pension fund if it is withdrawn in addition to other taxable income.

Please enter figures without commas i.e. 54000

Information provided on this calculator is for illustrative purposes only

£
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£
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Results

Total tax payable on cash lump sum withdrawal:

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{{taxPercentage() | number:0}}% of pension fund after tax-free cash subject to tax

Notes

  1. Figures based on income tax limits for tax year 2017/18
  2. No allowance made for blind person or married persons allowance
  3. The calculator assumes that 25% tax-free cash has been taken
  4. Information provided on this calculator is for illustrative purposes only. Do not make any major financial decisions without consulting a qualified specialist such as an accountant or financial adviser.
Rate Min Value Max Value Income taxable Amount Total Taxable Amount Tax on Income Tax on Total Tax on Pension
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Rate Min Value Max Value Income taxable Amount Total Taxable Amount Tax on Income Tax on Total Tax on Pension
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Are your clients paying too much tax on pension withdrawals? The Retirement Account can help

This account combines a Guaranteed Annuity, a Pension Drawdown facility and a Cash Account, all held within a single tax-advantaged wrapper written under Drawdown rules. 

  • Flexibile and unique income tax planning features
  • Income can be reduced, stopped and started again at any time to suit changing income needs and for ‘in retirement’ tax planning.

  • Beneficiaries can phase withdrawals over time, to help avoid exceeding thresholds such as higher rate tax (HRT)

 Find out more