Laws and tax rules may change in the future. A client's personal circumstances and where they live in the UK will also have an impact on tax treatment.

Using the income withdrawal optimiser

This income withdrawal optimiser tool will help you demonstrate to clients how they can take retirement income more tax efficiently.

It highlights how you could reduce the amount of tax your clients will pay by maximising the use of available allowances by varying the amount and source of income

Income Withdrawal Optimiser - withdrawal strategy report

Current Income

Client Details

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Since the Scotland Act the residency of the client may affect the rate of tax applicable therefore please select the applicable tax residency of the client.

Net
?

Enter the amount of yearly income 'after' tax your client is aiming to receive (including any current income)

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The tool defaults to the standard personal allowance for the tax year. If your client does not receive the standard allowance then enter the actual personal allowance received

Please enter the gross amount of annual income from all sources under the appropriate description. This will be used against the target income in order to establish the current shortfall that you are aiming to reach from the portfolio withdrawal strategy.

Current Income

Income type Gross amount p.a. Tax payable p.a. Net amount p.a.

Employed income

£ £0 £0

State pension

£ £0 £0

Other pensions

£ £0 £0

Rental income profit

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This is the amount after all allowable expenses are taken from income received for the property.

£ £0 £0

Interest

?

Enter all taxable interest from UK sources.

£ £0 £0

Dividends

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Enter all taxable dividend income from UK sources. Don't enter property income distributions.

£ £0 £0

Tax payable

£

Net income

£

Target income

£

Shortfall

£


Current Investments

Please enter the current values for each of the products held by the client.

?

You can only enter Defined Contribution (DC) pension values. Do not include any Defined Benefits (DB) unless they are already in payment as current pension income

?

Enter the amount of pension savings which can be withdrawn as tax free cash. Please note that withdrawals may be subject to limitations which the calculator will not account for

?

Please enter total value of any funds held in Mutual Funds/Open Ended Investment Companies (OEICs), these funds are also known as General Investment Accounts (GIA)

Withdrawal Strategy

Target income

£0

Net income

£0

Shortfall

£0

Set the portfolio withdrawal strategy

?

You can default the calculator to show the tax applicable if the shortfall is made up by only taking the income required from the pension pot up to the maximum available. Alternatively you can manually take different withdrawals from the various products held. This will demonstrate the effect on the amount of tax payable and allowances used by varying the withdrawal strategy.

Current value Withdrawal amount Tax Payable Net amount
Fixed income £0 £0 £0
Pension £0
£
£0
£0
Pension Tax Free Cash £0
£
£0
£0
ISA (S&S) £0
£
£0
£0
ISA (cash) £0
£
£0
£0
Personal Portfolio £0
£
£0
£0
Calculate tax on withdrawal based on
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Actual gain is the gain on a specific disposal. Portfolio gain assumes the client disposes their personal portfolio evenly across all assets and the gain is distributed evenly across the withdrawal. I.e. £100,000 PP with £30,000 gain assumes any withdrawal has a 30% gain.


Enter the gain before annual exempt amount. The calculator assumes the client has their full CGT annual exempt amount available.


The calculator deals with CGT relating to mutual funds only using the new 10/20% CGT rates.

Bond 1
?

The way and level of withdrawals you take from the bond can affect the tax liability. If you do a complete surrender then the withdrawal amount will be the value entered in the current investments section and will automatically populate

Bond 2
?

The way and level of withdrawals you take from the bond can affect the tax liability. If you do a complete surrender then the withdrawal amount will be the value entered in the current investments section and will automatically populate

Withdrawal Amount Tax Payable Net amount
Bond £0 £0 £0
Bond £0 £0 £0
Top Slice Relief £0 £0
?

Whilst the tax calculations use the correct Scottish or UK tax bands as appropriate, the graphs show a percentage used in relation to the UK bands only.

Total withdrawal

£0

Further tax payable

£0

Total net amount

£0

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