Calculate tax on withdrawal to take other accounts into consideration

The tax calculator on a withdrawal will calculate income tax on the withdrawal based on the total estimated income for the tax year on an account. Income already received and planned income (recurring withdrawals) and income tax already paid will be taken into consideration.

A client may, for instance, have more than one Annuity account on a platform and all the withdrawals on the different accounts need to be included in the calculation of income tax on withdrawals. In such an instance go to the relevant product/s:

If ‘Tax on withdrawal’ has been ticked, the tick box for ‘Income tax’ will become available. If ticked all accounts on an investor into products with ‘Income tax’ ticked will be included to determine income tax payable on an withdrawal.

See example and explanation of fields on the tax calculator TaxCalculatorWithTwoAccounts

Last Updated on 1 year ago by Debra Hart