Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 29 Jan 2024 22:01:31 GMT by
I am considering selling shares on which I have made a gain larger than the £6,000 Capital Gains Tax allowance for 2023/24. If my taxable income is £100,000 and the capital gain is greater than £6,000 will this push me over the £100,000 income band and result in a taper in my tax free allowance? Or does capital gains have no impact on my earned income? Similarly, if dividends paid in 2023/24 exceed the £1,000 tax free dividend allowance, would this result in a taper in my tax free allowance? Or is this completely independent of my earned income?
Posted Thu, 01 Feb 2024 11:04:03 GMT by HMRC Admin 25
Hi Mark Plews,
Your capital gains liability is not a factor in calculating your tapered personal allowances.
As all of the basic rate of tax is utilised against your income, there is nothing of the lower rate band left.
This means that the gains after your annual exempt allowance is applied, will be taxed at the rate of 20%.
Under UK law, your income is taxed first and after this is calculated, your capital gains can then be calculated.
Thank you. 


You must be signed in to post in this forum.