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Does Capital gains Tax push you into higher tax bracket?
vienly
Posts: 250 Forumite
Hi All, I can't seem to find a straight answer from Google as I get conflicting answers from different sites. Can't find exact answer on HMRC website either...
This has probably been asked a million times but does Capital Gains Tax push you into higher tax bracket?
Say I earn PAYE £48000, and I make a Capital gain of £3000 which total is £51000. Would that push me into the higher tax bracket or does CGT not count?
I assume interest from bank savings count as income also?
Trying to work on my finances, thank you
This has probably been asked a million times but does Capital Gains Tax push you into higher tax bracket?
Say I earn PAYE £48000, and I make a Capital gain of £3000 which total is £51000. Would that push me into the higher tax bracket or does CGT not count?
I assume interest from bank savings count as income also?
Trying to work on my finances, thank you
0
Comments
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No, capital gains are added to taxable income only for the purposes of determining the rate of CGT payable, but the gain isn't actually income so doesn't affect your income tax banding, etc.
And yes, savings interest (except from ISAs) is taxable income.1 -
Thank you, looks like I had it wrong all this time
0
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