David Lamb

Perfect. Many thanks. This is much clearer. I thought there was a missing piece and this is it.

Many thanks again for all your help. Can I just ask one more question on exactly what is taxed? If for example the overall portfolio gains £10,000 over the tax year and I sell £25,000 worth of shares to take as income, I assume that I pay tax on the £10,000 (the gain) rather than the £25,000 (the income - I asume the rationale being that £15,000 of this is original capital that hasn't made a gain and was originally taxed at source and the remaining £10,000 is gain). And similarly, if the gain were £30,000 and I sell £25,000 worth of shares to take as income, I would presumably pay tax on the £25,000 (the income from share sale). Sorry for the stupid questions, but just want to make sure I get it exactly right. Many thanks in advance 

Thank you very much for your reply. Perhaps one follow up question? If the gains/losses are a result of changes in share price within the portfolio and not due to share sale, would this be subject to CGT? Many thanks in advance 

Hi there I have an investment portfolio and take out £25,000 every year as part of my pension. I'm not clear whether I pay CGT on the £25,000 that I take out or on the gains or losses within the portfolio? So for example, if the portfolio lost £10,000, I assume that I pay no CGT regardless of what I take out (which was already taxed as income at source before I put it into the portfolio) And if the portfolio gains £10,000, I pay CGT on the £10,000? On my self-assessment, do I report the income, the gains/losses or both? Sorry for all the questions and grateful for any advice received.