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Question. In relation to the comment posted by "HMRC admin 25" above "When the gain, added to your income means that you are still a basic rate taxpayer" I interpret this as meaning the profit from the sale of a bond counts towards your income tax threshold. For example, if someone had an annual income of 50K (below the upper income tax threshold) and sold a bond with a profit/chargeable event gain of 10 K, they would be determined to have an income of 60K and, therefore, would now be in the upper-income tax range of 40%. Therefore they would be liable to pay 40% ie 4K tax on the profits of the bond sale (not accounting for the small proportion of that would be taxed at the low rate (20%) to get up to the actual threshold). Is that correct?