How Does Your Day Job Salary Effect Capital Gains On Investments?

Hi there,

I’m new to investing so any help much appreciated! I’ve tried getting to the bottom of this but can’t seem to find a clear and definitive answer.

My question is on the tax-free allowance of £12,300 in the UK and on investments made outside of a tax-free wrapper like a stocks and share ISA. Let’s imagine I have a job that pays a 80k yearly salary on which tax is taken by the government based upon those earnings. If, separately I were to make profit on investments and then sell them to the amount less than £12,300 - will I or won’t I need to pay any more tax to the government beyond what I would already be contributing through my jobs salary?



Capital gains up to the threshold are separate from income, so once you’re below the threshold you shouldn’t have anything to pay, regardless of how much you earn. However, above the limit, the amount you pay is graded based on your taxable income.


Great thanks for clarifying. I assumed that was the case. The reason I wanted to know as I was hoping to make some returns outside of my stocks and shares ISA, which I might later then put the returns into.