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Capital Withdrawal Financial Planning Tool

For financial advisers only

This financial planning tool provides two potential outputs. One calculates the capital gain on a given withdrawal from an investment, while the other calculates the amount of withdrawal which can be made when looking to use an individual's or trustee's annual exemption.

The calculations assume capital withdrawals only.

Where a portfolio consists of multiple funds, each calculation needs to be made at individual fund level.

eg £100,000 invested, £20,000 in each fund - A | B | C | D | E

eg the figure £20,000 should be inserted in the 'Amount of invested capital' box, and the value of that investment in the 'Fund value before withdrawal' box.

Five separate calculations would need to be made in this example.

Calculate Gain

This will calculate the gain based on a capital withdrawal from the investment.

The amount of invested capital will need to be reduced every time a withdrawal is made:

eg year one: £100,000 amount of invested capital
                        £10,000 withdrawal made of which £7,000 is capital, 
                        £3,000 is gain.

The figure for the next calculation (year two) would be £93,000 for the amount of invested capital. The invested capital amount is reduced by the capital element from the year one withdrawal (£7,000) and not the total withdrawal amount (£10,000).  Where an investment has had previous withdrawals you will need to input the correct, recalculated figure for the remaining invested capital, to ensure the calculation is correct.

Calculate Withdrawal

This will calculate the maximum amount of capital which can be withdrawn from an investment to maximise the use of an individual's or trustee's annual exemption.

The allowance can be changed for those who have used part of the allowance or are trustees where the allowance is lower.

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