Calculating adjusted net income

Hello, Some questions on calculating adjusted net income that aren't answered by https://www.gov.uk/guidance/adjusted-net-income. 1. Do capital gains made from sale of shares contribute towards adjusted net income? Does it make a difference if the gain is above or below the personal £6000 capital gains allowance? 2. I believe that all dividend income or interest income contributes to adjusted net income, even that within the personal allowance. E.g. £50 in interest generated from a personal bank account will contribute towards the adjusted net income total. Thanks

Hi,

Capital gains are not included in your adjusted net income. Interest from savings and dividend income are included, however.

Thank you.

Hi HMRC, I have a query on how to calculate adjusted net income , I make a total of £90,000(including bonus) annually from my employment, I have no other income source, I contribute 10% to work pension scheme, that is before deducting tax, so I am taxed only for 81000, In this scenario what will be my adjusted net income is it 81000 or 90000? Appreciate your response ,

Hi,
If the pension is deducted from your salary before tax is calculated then the adjusted net income will be your gross slalary plus bonus minus the pension contribution. This will already be taken into account on your wage slip or P60. Details on adjusted net income can be seen here:
Personal Allowances: adjusted net income
Thank you.

Hi, I have been awarded shares by my employer but they do not vest until 3 years from now. Please can you confirm if these shares will count towards my adjusted net income for this tax year? Or do they only count towards my adjusted net income in the year they vest?

Hi,
They will not count towards your adjusted net income.
Thank you. 

A couple of questions please. If shared are sold, do the earnings increase the adjusted net income? I participate in a salary sacrifice scheme through employer. I can also pay into my pension fund from my savings with a debit card. If make a pension payment, will it reduce my adjusted net income?

Hello, a few questions - savings income counts towards adjusted net income, but is it only above your Personal Savings Allowance? - I have assumed investment returns from selling a stocks and shares fund doesn't count as savings or dividends as it is capital gains (even if some of the value is coming from dividends received by the fund)? - gifts from family are also excluded?

Hi ,
 

Please refer to the following Guidance - : Personal Allowances: adjusted net income   . Thank you .

Hi ,
 

Please see the following Guidance for your information : Personal Allowances: adjusted net income    . Thank you .

Hi I have a question about calculating adjusted net income that isn’t clear from HMRC advice. I get awarded shares as part of my annual bonus scheme which vest after 2 years. Do I need to include these in my adjusted net income for the year they are awarded, the year they vest, or not at all? Thanks Richard

Hi Richard,
No you do not include as part of your adjusted net income at all.
Thank you.

Hello, Is the adjusted net income calculation different for taxation in Wales, If so where can I read up on any differences? Thanks.

Hi LP_M,
The Adjusted Net Income calculation is the same for Wales as the rest of the country Personal Allowances: adjusted net income
Thank you.