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Posted Tue, 15 Nov 2022 14:05:35 GMT by mmormc82
Hello, I am completing my self assessment tax return for the 21/22 tax year and have capital gains to include. What I would like to know is whether the 'income' from these capital gains (which are shares ) should be included when calculating my adjusted net income in relation to the High Income Child Benefit Tax. Many thanks
Posted Thu, 17 Nov 2022 12:17:48 GMT by HMRC Admin 32

You do not need to calculate your adjusted net income. Self Assessment does this for you. Capital gains is a tax separate to Income Tax and is not used to calculate the high income Child Benefit charge.

Thank you.
Posted Thu, 17 Nov 2022 12:27:28 GMT by mmormc82
Thank you for the information. Could I also check if the same would apply to SIP shares if they are sold before 5 years and therefore subject to tax? I know the gifted amount is taxed through PAYE but do any gains also fall under Capital Gains allowance? Thank you
Posted Tue, 22 Nov 2022 11:08:26 GMT by HMRC Admin 32

Please refer to guidance here:

Tax when you sell shares

Thank you.

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