I started my Job about a year ago and in the space of one year, I have demonstrated my abilities in the organisation, I have also completed a designation. all my colleagues and leadership team are well aware of my performance. I was thinking of asking for a promotion during my yearly review by the end of the year, this isn't only about the money, I honestly believe I am ready for position I am asking to be promoted to. I am worried if 1.5 years is too soon to ask for a promotion.
It's never too soon. As soon as you prove you're worth the investment, it's a good time to ask.
I have demonstrated my abilities in the organisation, I have also completed a designation. all my colleagues and leadership team are well aware of my performance
Sounds like you've already done that. Small nitpick, just because your abilities are great doesn't mean they bring value to the company, but that's just me being pedantic. Bring your I'm awesome1 file with you, and good luck
1 Every time you do something great, you put it in this file. When it's time for review, you pull it out to show what you've achieved
It's a little soon.. but I wouldn't say it was too soon. Less than a year would be pushing it a little, less than six months would likely be viewed as presumptuous and less than three months would probably see you laughed out of your manager's office, 18 months is probably long enough for you to have proven your worth and to have repaid the investment in time, effort and possibly money that the company expended in recruiting you for your original position.
The best approach is to line up some arguments as to not only why you are capable/qualified to perform the role you are aiming for but most importantly why the company would benefit more from having you in the new position rather than your current one. If your current role has any transferable skills or knowledge that would help in the new one and you have any examples of achievements or feedback to support you having that skills/knowledge then use these to support your position.
It's also a good idea to show awareness of what would be involved in recruiting someone external for both positions - if [old role] is really easy to recruit for but people who can do [new role] are hard to find then this works in your favor, if the reverse is the case then having some suggestions for how you could help with any transition is a good way to show that you're taking the company's needs into account.
There are two parts in this:
If you take out the money, this is asking for more responsibility. From a employers perspective the this should be a good thing. Provided you have an accurate picture of yourself and can handle what you asked for, you can always do this.
There are some circumstances that may prevent your superiors to give you that responsibility right now despite thinking you could handle it. If that is the case, be patient and make the discussion about where you want to get to, once there is room for promotion. Letting your bosses know you are ready and willing for more responsibility is one step towards actually getting it.
Ideally, you should get what your services are worth. Now this value is hard to estimate, but the bottom line is: what somebody else would pay for you, if you changed job´s.
As a rule of thumb, you can and should renegotiate this about once a year, or whenever your work changes significantly.
How much you are really paid depends largely on your ability to negotiate and if you are in the right position (not over-qualified). So before going into any such discussion, do your homework and really know your worth and your options, should you not reach a common understanding of it. After all, a negotiation you can´t walk away from is not a negotiation.