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Tax Relief Modeller

As well as providing a valuable benefit in helping people save to provide an income in their retirement, pensions contributions can:

  • attract tax relief at the individual's marginal rate of income tax;
  • be used to reclaim lost personal allowances;
  • be used to reduce or remove the Child Benefit tax charge;
  • reduce the tax payable on Chargeable Gains from investment bonds;
  • reduce the amount of Capital Gains tax payable on the disposal of an asset.

Tax Relief on individuals' contributions is only available up to 100% or £3,600 (including tax relief), whichever is greater, of their Relevant Earnings. Subject to the maximum of the annual allowance limits, if these are exceeded there may be a tax charge. For more information please refer to the Annual Allowance Calculator.

To help you understand the effect a pension contribution can have on someone's tax position, we've developed a calculator.

Using the calculator

Our Tax Relief Modeller allows you to input the details of your client's income and existing pensions contributions. It then works out and graphically displays:

  • pension contributions;
  • amount of income in each tax band;
  • amount of allowances available / lost;
  • amount of Child Benefit available / lost;
  • contribution required to remove higher and / or additional rate tax;
  • income distribution between the bank, pension and taxman.

It then allows you to input an additional pension contribution.

It then:

  • works out the effective rate of tax relief of the additional contribution
  • calculates and displays the tax position after the additional contribution. Please note that it wont factor in any Annual Allowance charges.

Full calculations are available as well as graphically displaying the before and after contribution position.

NOTE: The calculator does not take into account National Insurance.

The tax relief modeller is designed to support latest browsers and operating systems - the later the better! Please refer to your browser help section for Compatibility view settings' if certain screens are not displaying correctly.

As well as tax relief available on contributions, the annual allowance position also needs to be considered. Visit our Annual Allowance calculator below.

Annual Allowance Calculator
(this requires Microsoft Excel - version 97 or later)

If you have any questions on the taxation of personal pension contributions you can contact our technical experts 03457 11 12 13.

Both our calculators are based on our understanding of current taxation, legislation and HM Revenue & Customers practice, all of which is subject to change without notice. The impact of taxation (any other reliefs) depends on individual circumstances.

*Lines are open from 10.00am to 4.00pm Monday to Friday. Calls may be monitored or recorded for quality and security purposes

Terms of Use
1. In the Terms of Use 'The Software' means all software (excluding Microsoft Excel) and other materials contained within the calculator.
2. Microsoft Excel is a registered trademark of the Microsoft Corporation.
3. Copyright and all other intellectual property rights in respect of The Software is, and shall remain at all times, in the ownership of Prudential.
4. The Software shall be for your own use and shall not be given, sold, loaned to or allowed to be used by any person not employed by or contracted to you.
5. You may make one copy of The Software for security back up purposes. These conditions shall apply to any copy made.
6. You must not decompile, reverse engineer or otherwise tamper with The Software contained within the calculator.
7. We may, from time to time, issue amended or updated versions of The Software. Should this occur, this will then become the current version of The Software at any time.
8. Prior to release of this calculator, we have carried out virus checks using up-to-date virus-checking software. We do however recommend that you carry out such checks as you consider appropriate prior to using these calculators. We cannot be held responsible for any loss or damage caused by the continued presence of a virus which has not been detected by the virus checking software.
9. The Software has been prepared in accordance with our understanding of the Guidelines of the Financial Conduct Authority and current taxation, legislation/draft legislation and HM Revenue & Customers practice, all of which is liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances.
10. We have applied care and skill to produce The Software to a professional standard. However, we cannot guarantee that The Software is free of errors or omissions, nor can liability be accepted for any losses, howsoever incurred, arising from the use of The Software.

For UK Adviser Use Only - Not Approved For Use With Clients