Adjusted Income Annual Alllowance - query

Hi , the threshold income annual allowance is £200k, and the Adjusted income annual allowance is £260k. For every £2 over the adjusted income annual allowance your pensions annual allowance decreases by £1, and can fall to £10k. For what you have paid into the pension above that £10k you will then have to pay 45% tax on (if 45% tax payer). My query is- to get to the adjusted income annual allowance Gross salary + any bonuses + Any dividends received + savings interest + Employers pension contributions (and if any salary sacrifice and deducted prior to tax by the employer) + any rental income if applicable = Adjusted income amount If you sold shares (and pay capital gains tax) , do the capital gains on the sale of the shares ,is this a separate matter or are they included in the formula ? thank you for any help on this Mick

Hi ,
 

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

Not HMRC...capital gain does not factor in the equation, its not income, its a gain.