RE: Off Topic - Tax31 Jul 2020 09:52
As zoo said, ISA/SIPP is 0% tax. Otherwise things get a bit more complex.
First, calculate you taxable income by deducting your tax-free personal allowance (£12,500) from your total income.
Second, calculate your taxable capital gain by deducting the tax-free CGT allowance (£12,300) from your profits.
Finally, Add your taxable capital gain to your taxable income.
If your taxable income and your taxable capital gain added together is less than £37,500, you’ll pay basic-rate CGT (10% on most investments). If the two figures added together put you over a higher tax threshold, you’ll pay the basic-rate (10%) on the part up to the threshold, and the higher rate (20%) on the rest.
Example:
Say your total income is £32,500, therefore, your taxable income (what's left after deducting the personal allowance) is £20,000, and your taxable gains are £12,600. After taking away the CGT allowance of £12,300, you're left with £300 that you'll need to pay tax on. Add this £300 to your taxable income, bringing it up to £20,300. This is still below the higher-rate threshold, meaning you'll pay 10% on the capital gains. Therefore, your CGT bill would be £30.