Is a taxable capital gain added to other income to determine which tax rate bracket you are in?
That is: for the purpose of determining which tax band one is in, are taxable capital gains treated as income?
Arb.
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Capital gains and tax rate
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Re: Capital gains and tax rate
Arborbridge wrote:Is a taxable capital gain added to other income to determine which tax rate bracket you are in?
That is: for the purpose of determining which tax band one is in, are taxable capital gains treated as income?
Arb.
No -it’s based on the usual meaning of Taxable Income [deduct pension contributions etc]
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- The full Lemon
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Re: Capital gains and tax rate
DrBunsenHoneydew wrote:Arborbridge wrote:Is a taxable capital gain added to other income to determine which tax rate bracket you are in?
That is: for the purpose of determining which tax band one is in, are taxable capital gains treated as income?
Arb.
No -it’s based on the usual meaning of Taxable Income [deduct pension contributions etc]
So if, for example, I make a one-off gain of a £150k on selling a house (which is not private residence), I don't suddenly leap into a higher rate then?
Arb.
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- Lemon Slice
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Re: Capital gains and tax rate
Arborbridge wrote:Is a taxable capital gain added to other income to determine which tax rate bracket you are in?
That is: for the purpose of determining which tax band one is in, are taxable capital gains treated as income?
So if, for example, I make a one-off gain of a £150k on selling a house (which is not private residence), I don't suddenly leap into a higher rate then?
Arb.
Yes you would pay higher rate CGT but your income tax rate is not changed.
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