Tax trap doubt

RobHT

Hello,
as far as I know, between 100 and 125k annual salary, the tax will become 60% due to the tax allowance loss.
So, I wonder if I will be considered in that range with my CGT on top of my salary.

I'm employed, but I don't overtake 100k (but probably yes with CGT due to stocks), not for this financial year at least, so, is it just the primary income that I need to consider or also my CGT due to stock sell?
Basically, what does it trigger that income threshold? Primary income? Primary income + CGT? + dividends? + whatever else?  

Jeremy535897

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

RobHT

Jeremy535897 said:

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

Thank you, but what it would be interests? Is it about a kind of tax rebate if you claim back some interest? (for example the mortgage interest)

In general, I think that or you stay above 125k, or stay below 100k to avoid this mess and potential money loss for external sources of CGT like investments...

Jeremy535897

Interest received, for example bank interest.

[Deleted User]

RobHT said:

Jeremy535897 said:

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

Thank you, but what it would be interests? Is it about a kind of tax rebate if you claim back some interest? (for example the mortgage interest)

In general, I think that or you stay above 125k, or stay below 100k to avoid this mess and potential money loss for external sources of CGT like investments...

The rate of CGT is unaffected whether you earn £100k or £125k from other sources. 

RobHT

[Deleted User] said:

RobHT said:

Jeremy535897 said:

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

Thank you, but what it would be interests? Is it about a kind of tax rebate if you claim back some interest? (for example the mortgage interest)

In general, I think that or you stay above 125k, or stay below 100k to avoid this mess and potential money loss for external sources of CGT like investments...

The rate of CGT is unaffected whether you earn £100k or £125k from other sources. 

How it can be unaffected? Between these amounts, your tax allowance is lost...

p00hsticks

RobHT said:

[Deleted User] said:

RobHT said:

Jeremy535897 said:

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

Thank you, but what it would be interests? Is it about a kind of tax rebate if you claim back some interest? (for example the mortgage interest)

In general, I think that or you stay above 125k, or stay below 100k to avoid this mess and potential money loss for external sources of CGT like investments...

The rate of CGT is unaffected whether you earn £100k or £125k from other sources. 

How it can be unaffected? Between these amounts, your tax allowance is lost...

Capital Gains is a differnt tax to Income tax, and has a different allowance.....

RobHT

I also wonder if job benefits in kind are in the equation, I think that it's only for benefits in kind though... Not benefits paid entirely by the company, where the taxes are paid entirely by the company and I get the service.

RobHT

p00hsticks said:

RobHT said:

purdyoaten2 said:

RobHT said:

Jeremy535897 said:

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

Thank you, but what it would be interests? Is it about a kind of tax rebate if you claim back some interest? (for example the mortgage interest)

In general, I think that or you stay above 125k, or stay below 100k to avoid this mess and potential money loss for external sources of CGT like investments...

The rate of CGT is unaffected whether you earn £100k or £125k from other sources. 

How it can be unaffected? Between these amounts, your tax allowance is lost...

Capital Gains is a differnt tax to Income tax, and has a different allowance.....

Oh .... So you are saying that I got confused between the income allowance of 12500 and the CGT allowance of 12300?

Jeremy535897

RobHT said:

I also wonder if job benefits in kind are in the equation, I think that it's only for benefits in kind though... Not benefits paid entirely by the company, where the taxes are paid entirely by the company and I get the service.

Capital gains don't affect the withdrawal of personal allowance. If you have an adjusted net income above £100,000, you will start to lose personal allowance. If you have an adjusted net income of £100,000 or less, you won't lose personal allowance, whether your gains are £1 or £1 million. As you are a higher rate taxpayer, gains on most assets will be taxed at 20%, but gains on residential property will be taxed at 28%.

If you have benefits in kind, these are part of your adjusted net income.

[Deleted User]

RobHT said:

p00hsticks said:

RobHT said:

purdyoaten2 said:

RobHT said:

Jeremy535897 said:

The relevant figure is adjusted net income. See: https://www.gov.uk/guidance/adjusted-net-income#what-is-adjusted-net-income

This will include earnings, interest and dividends, whether taxed at the 0% rate or not, but not capital gains.

Thank you, but what it would be interests? Is it about a kind of tax rebate if you claim back some interest? (for example the mortgage interest)

In general, I think that or you stay above 125k, or stay below 100k to avoid this mess and potential money loss for external sources of CGT like investments...

The rate of CGT is unaffected whether you earn £100k or £125k from other sources. 

How it can be unaffected? Between these amounts, your tax allowance is lost...

Capital Gains is a differnt tax to Income tax, and has a different allowance.....

Oh .... So you are saying that I got confused between the income allowance of 12500 and the CGT allowance of 12300?

You have - but note that I specifically referred to the RATE of Capital Gains Tax.