capital gains tax .................?

Question

do you pay 40% on gains over and above your allowance in the uk regardless,

Or - If the gain does not bring that tax years income into the higher tax bracket do you only pay 22%ish instead of 40%

Answer 1

You are nearly correct.

The gain is added on to your other income for the year. To the extent that this remains below the higher rate band you will only pay 20% tax (not 22%). Anything above and the full 40% is payable.

Note that if you have no other income then you get no relief for your personal allowance or the 10% band as these apply strictly to income tax.

Answer 2

Capital gains tax is a seperate tax to income tax so even if you earn no money in the year you will be subject to the full 40% tax rate on your capital gains above your annual allowance. There are numberous other exemptions and ways to cut your tax bill so if you have a significant likely bill it is always worth talking to a tax advisor to try and cut your liability.