Tuesday, 19 February 2013 10:21
Hargreaves Lansdown offers investors tax calculators
Hargreaves Lansdown has added two new pension calculators to help investors ensure they do not miss out on tax breaks.
It is offering a carry forward calculator and a tax relief calculator in addition to its other Financial Planning tools.
The firms says these are especially valuable for those investors whose taxable incomes exceed £150,000 and will see their marginal tax rate fall from 50 per cent to 45 per cent on 6 April.
The carry forward calculator is interactive and confirms the investor's maximum contribution for the current year and identifies if the annual allowance has been exceeded in any one year.
The maximum contribution for the 2012/13 tax year is £50,000 and the maximum carry forward based on pension membership for the past three tax years is £150,000.
{desktop}{/desktop}{mobile}{/mobile}
If the investor delays until 6 April, the rate of tax relief would drop to 45 per cent meaning only a further £50,000 could be claimed through the self-assessment system.
The tax relief calculator identifies where contributions may be not eligible for tax relief.
Tom McPhail, head of pensions research at Hargreaves Lansdown, said: "Higher earners could miss out on up to £10,000 tax relief if they miss the opportunity before it goes."
Both tools are free and available on the Hargreaves Lansdown website www.hl.co.uk. Other tools available include a index-tracking funds tool, regular savings calculator and income drawdown calculator.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
It is offering a carry forward calculator and a tax relief calculator in addition to its other Financial Planning tools.
The firms says these are especially valuable for those investors whose taxable incomes exceed £150,000 and will see their marginal tax rate fall from 50 per cent to 45 per cent on 6 April.
The carry forward calculator is interactive and confirms the investor's maximum contribution for the current year and identifies if the annual allowance has been exceeded in any one year.
The maximum contribution for the 2012/13 tax year is £50,000 and the maximum carry forward based on pension membership for the past three tax years is £150,000.
{desktop}{/desktop}{mobile}{/mobile}
If the investor delays until 6 April, the rate of tax relief would drop to 45 per cent meaning only a further £50,000 could be claimed through the self-assessment system.
The tax relief calculator identifies where contributions may be not eligible for tax relief.
Tom McPhail, head of pensions research at Hargreaves Lansdown, said: "Higher earners could miss out on up to £10,000 tax relief if they miss the opportunity before it goes."
Both tools are free and available on the Hargreaves Lansdown website www.hl.co.uk. Other tools available include a index-tracking funds tool, regular savings calculator and income drawdown calculator.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
This page is available to subscribers. Click here to sign in or get access.