Hi Sarah74 Jobson,
To establish what CGT rate you will pay in a given tax year, you first have to work out how much taxable income you have.
You arrive at this figure by calculating your total income less your Personal Allowance and any other Income Tax reliefs you’re entitled to.
You then work out your total taxable gains by deducting your tax-free allowance from your total taxable gains, and add this amount to your taxable income.
If this amount is within the basic Income Tax band you’ll pay 10% on your gains (or 18% on residential property).
You’ll pay 20% (or 28% on residential property) on any amount above the basic tax rate.
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.