Yes, unrelated, but what happens is that gains have their own free limit of £8200 separate from the other limit of £4745. In detail it's more complicated, but you can think of it as the excesses, i.e. gains above £8200 and other income above £4745 then being poured into the same pot, and the first £2020 of that pot taxed at the starting rate, the next £29380 at the standard rate, and the rest at the higher rate.
No, that way you'd lose entitlement to the £8200 freebie.
I don't think it will make it less taxable directly. But if you do invest the proceeds in an approved pension, the nice taxman will top up the pension fund with the tax he took from you. Opinions are divided on whether such pensions are worth going for. The problem is that all you can do with the fund when you retire is buy an annuity, which will then be taxed. You might be better off paying the tax now rather than later and retaining more control over how you invest the money, and be forever free from restrictions of what you can do with it.
Thank you for the tip. I'm glad you said that, because I definitely like the idea of having full control over my limited financial resources between now and when I retire. Again, many thanks for your kind assistance.
JK
The point with pensions is not only that you don't have full control before you retire, but also that you don't have it afterwards either!
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