Capital Gains and Income Tax

[Berts]

Can anyone please advise how CGT works with income tax - I have joint share of a plot that we hope to get planning permission on and sell.

Two questions:
1) My positon: - Personal Income £18k pa; Anticipated capital gain: £42k (my share from sale of building plot). Total income £60k.
I believe I pay higher tax band on capital gain (28% on everything above CGT allowance of £11,100) i.e CGT 30,900 x 28%

Q1. Do I also pay the higher tax band on my personal income of £18k (now that my total "income" is £60k)?
Is my income tax 20% or 40% (Income£18k-11k personal allowance = £7k subject to tax @ 20% or 40%)?

2) My husbands position:- Personal income £99k pa; Anticipated capital gain £11,100 (as beneficial owner via Bare Trust to use his CGT allowance). Total income £110,100

Q2. If the Capital Gain is added to his personal income, does he lose his £11k personal tax allowance because his "income" would now be in the £100-122k band. I note the gov website states "Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £122,000 or above."

Thank you for any advice on this.

[AmanSood]

In your example your total income is £60k (£42k gains and £18k income). Assuming you are talking about the 2016/17 UK tax year, the tax payable would be calculated as follows:-

Income Earned - £18,000
Personal Allowance - £11,000
Taxable income = £18,000 -£11,000 - £7,000

Gains made - £42,000
Gains allowance - £11,100
Taxable gains - £30,900

Total taxable income and gains - £7,000+£30,900 = £37,900
Tax payable - (£7,000 x 20%) + (£25,000 x 18%) + (5,900 x 28%) = £7,552

2) In your husband's case, in determining whether the £100,000 taxable income limit is exceeded you exclude any capital gains so his personal allowance of £11,000 would not be reduced.

[Berts]

Thank you very much AmanSood - that's really helpful. Much appreciated.