We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Does a large capital gain affect which tax band you're in?

hallmark
hallmark Posts: 1,507
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
Forumite
edited 5 September at 7:52PM in Savings & investments

Apologies for this question which I ought to know but don't and can't easily find the answer…

If you're otherwise a basic-rate taxpayer, i.e. lets say you earn £40k, and you make a large capital gain (e.g. from selling a rental property) which gives you say chargeable capital gain of £150K, what rate of CGT do you pay?

Is it 18% because you were a basic rate taxpayer?
Or 24% because the capital gain itself pushes you into a higher bracket?

thanks

Comments

★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 355.7K Banking & Borrowing
  • 254.9K Reduce Debt & Boost Income
  • 456.1K Spending & Discounts
  • 248.3K Work, Benefits & Business
  • 605.9K Mortgages, Homes & Bills
  • 179K Life & Family
  • 263.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.