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• # 77759
• Fri 16 Dec 2011 11:26 AM

Hi there,

I am not sure if Capital Gain count as taxable income to be calcuated together with salary, interest & other income - I come across this question and I don't know the definate answer. I know the calculation for CGT is based on a different rate (18% or 28% depends on when the disposal is) from the rate for calculating income tax - does this mean that we could treat Capital Gain seperately from the total taxable income?

Any help will be mostly appreciated.

Anna

Edited at 16 Dec 2011 11:31 AM GMT

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• # 77760
• Fri 16 Dec 2011 11:55 AM

Hi Anna

Capital Gains is a different tax from Income Tax.

Income tax should be based on "earned income only including savings and dvididend income"

Capital Gains is a tax based on the sales of your goods or chattels and has it's own threshold which is seperate from the personal allowance as well as it's own rates.

I hope this helps

Kind regards
Stuart

Edited at 16 Dec 2011 11:55 AM GMT

• Forum Moderator, South East & Greater London Regional Chairman
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• # 77763
• Fri 16 Dec 2011 01:47 PM

Hi Stuart,

Thank you so much for the quick respond. Very helpful indeed.

Anna





Edited at 16 Dec 2011 06:57 PM GMT

Edited at 16 Dec 2011 08:18 PM GMT

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