A credit depends on your total income
Once you have calculated the ‘amount liable to CGT’ you still need to know how much tax to pay the IR. The rate at which CGT is payable depends on the individual taxpayer’s income tax rate for the year in question. The amount liable to tax is treated as the ‘top slice’ of your income (i.e. it is added to your income for the year) and charged to CGT at the rate applicable (sometimes known as the ‘marginal rate’).
Depending on your total income for the year, the rate could be at the basic rate or the higher rate, or some at the basic rate and the balance at the higher rate.
It is obviously useful if you can estimate in advance what the likely CGT consequences of your asset disposals it will be. You should get expert taxation advice on this and will help if you have kept your business records in an orderly fashion.
