Capital gains tax rate for someone with variable pay

[langtonbrow]

Hello to all. Quick question. Could I sell an asset liable to CGT and subsequently increase salary sacrifice through the remainder of the year, effectively reducing my CGT tax rate to basic rate tax? If that is theoretically possible how would it practically work, would it be via a rebate once self-assessment is completed?

[bd6759]

The correction would be via self-assessment - if you are required to complete one.

[D&C]

What correction?

The op hasn't specified what type of asset is being sold so reporting the gain may be dealt with via a Self Assessment return.

And there is nothing you can claim for in relation to salary sacrifice pension contributions as these are

employer

contributions.

The tax benefit comes from having less pay to be taxed (and have NI deducted) in the first place. And corresponding reduction in the rate band used on the income tax liability.

[bd6759]

What correction?

The op hasn't specified what type of asset is being sold so reporting the gain may be dealt with via a Self Assessment return.

He said “rebate” suggesting he will have paid tax in year - I inferred this to be a residence CGT return.

If he doesn’t know exactly how much of the gain will be charged at the lower rate at that time, it will sort itself when he does his self-assessment. Salary sacrifice can affect the rate bands.