Understanding Capital Gains Tax and Its Impact on Your Tax Bracket in the UK

Hi there,

Could you please clarify if the gains you make when you sell investment influences if you fall within basic or higher tax bracket? I mean, say my regular income means I'm in the basic rate bracket, but the extra income I get as a result of selling shares pushes me into the higher earner bracket.

Thanks

Yes, capital gains from selling investments (like shares) can indeed push you into a higher tax bracket. Here's how it works in the UK:

To determine your tax bracket for Capital Gains Tax (CGT), you add your taxable capital gains to your regular taxable income. For example, you can use this link to help you figure out how much you owe.

You can read more about Capital Gains Tax in our guide here.