Understanding Capital Gains Tax Thresholds

a1234555

So from reading on the .gov and various other websites my understanding is that if my overall income (all employments + realised capital gains) is above £50k I will have to pay 20% capital gains tax on all realised capital gains apart from the £12,300 allowance. Is this correct or would I only pay 10% up to £50k overall income and then 20% on gains on top of this (akin to how income tax thresholds work)? The reason for the question is because I earn around £24k from main employment, £6.5k from self employment and will likely earn over £20k from selling investments at a profit. I've tried looking for online tax calculators that include capital gains but could only find the ones that are to do with selling property or the ones that don't ask about employment income.

eskbanker

https://www.gov.uk/capital-gains-tax/rates explains that, after adding chargeable gains to income:

If this amount is within the basic Income Tax band you’ll pay 10% on your gains (or 18% on residential property). You’ll pay 20% (or 28% on residential property) on any amount above the basic tax rate.

a1234555

Ah ok, so I guess the £50K figure is outdated this tax year. Thanks, there's way too much information out there that's not updated.

bd10

Personal allowance     12,500

Basic rate (empl.)         18,000 at 20%

Cap gain allow.             12,300  at 0%

Basic rate (cap gains)   7,200 at 10%

Higher rate (cap gains)  500 at 20%

bd10

To stay within the basic rate band, you could always make a contribution to your SIPP or pension by the gross amount you exceed the basic rate band. So if you'd be over by 500, pay in 500/1.25 into the pension. Pension contributions extend the basic rate by the gross amount. Just a thought.