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Does a large capital gain affect which tax band you're in?
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
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Part of the capital gain would spill over into the higher rate band.
There is a fairly clear description at
2
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