The Lemon Fool

I am trying to determine whether I am a basic or higher rate tax payer in relation to the Personal Savings Allowance. I understand you have to work out your Adjusted Net Income. Can you tell me whether Capital Gains,from non ISA UK Unit Trusts / OEICS which are below the annual CG allowance, should be included in Adjusted Net Income. My Salary - Pension (Salary Sacrifice) + total Savings Interest + total Dividends is around £43k. I also have Capital Gains this tax year (18/19) of around £8k, so depending on whether the Capital Gains count towards the Net Adjusted Income, will determine if I am a basic or higher rate tax payer.

paulatscafell wrote:I also have Capital Gains this tax year (18/19) of around £8k, so depending on whether the Capital Gains count towards the Net Adjusted Income, will determine if I am a basic or higher rate tax payer.

I don't believe Capital Gains count for Income in that context. Provided they are below the allowance, you aren't required to disclose the exact amount to HMRC.