The problem with this approach is that instead of taxes being withheld at a flat 25%, and having that 25% rate applies only to the bonus amount, taxes are withheld at what is almost certainly a higher rate on the combined amount of your normal pay and the bonus. The result: a higher overall tax obligation initially for the same amount of income. A seller pays taxes at the long-term capital gains rate—0%, 15%, or 20% in 2019, depending upon his total income—when he holds an asset for longer than one year before sale. Assuming he's single, he would pay 0% if his total income was $39,375 or less, 15% if his income was $39,376 to $434,550, If you live in Scotland you will have to pay the higher rate of 41% tax on the amount above £43,431 up to £150,000. Additional rate If you live in England, Wales or Northern Ireland and have taxable income of more than £150,000, you will have to pay the additional rate of 45% tax on the amount above this level.