, What was the gross pension withdrawal? I have tried many things to work out a formulaic relationship between the various parts but am completely stuck. Any help/clues would be greatly appreciated!

- Thread starter Kenaida
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, What was the gross pension withdrawal? I have tried many things to work out a formulaic relationship between the various parts but am completely stuck. Any help/clues would be greatly appreciated!

Gross Pension Withdrawal : £100,000

Of which 25% is tax free cash : £25,000

Easy...

But when some is taxed at 20% it was unclear how to reverse the calculation.

Gross Pension Withdrawal : £100,000

Of which 25% is tax free cash : £25,000

If the first £50k was taxed at 20% it would leave : £40k

The next £25k at 40% would leave : £15k

Add back in the TFC (£25k) and you get : £80k

So to reverse this you have to run this excel formula

=IF(

I hope this helps someone, but feel free to ask any questions if you need to use the formula. I needed it for a cashflow model to maintain a steady stream of inflation linked income where the pension withdrawals had the tax free cash component and had to be accounted for. Otherwise the net income after tax would be different.

=IF(