P285 CEEFAX 285 Sat 8 Jun 23:06/53 1/3 5{n1 0j5 j5j $ P T G S X You work out the taxable gain or allowable loss on selling an asset b deducting the cost of th ass t from the proceeds you g t wh n you s ll it. Gains and losses are netted off. The annual ex mption of £6,000 (£6,300 for 1996/97) for an individual is then deducted. Any remaining gain is taxed at your own top rat of incom tax. Only gains made since 31 March 1982 are taxa l . n tw p i not taxable. Source: rnst & Young (see page 281) PI P s oms In j itanc Cal ndarP285 CEEFAX 285 Sat 8 Jun 23:05/03 2/3 CAPET L GAINS T X You can reduce the taxable gain fuzthjr * th cost of any improv m nus * indexation allowance, which offsets the inflationary element of the gain. The can b claim d on the original cost and the cost of improvements. See page 286 for retail price index figur s dating back to 1982. Source: Ernst & Young (see page 281) P P ns oms Ind itanc Cal ndaP285 CEEFAX 285 Sat 8 Jun 23:05/43 3/3 M CAP T L G I X CA O Asset bought in June 1990 for £15,000 and sol in June 1 9 fo £30,000. UPI for June 1990 was 126.7: UPI fo June 1995 was 149.8. Indexation allowance: (149.8-126.7) ÷ 126.7 = 0.182 .18 x 1 , 00 = £2,73 Capital gain: proceeds 30,000 less cost plus indexation (17,730) gain 12,27 exemption * 6,000 taxable 6,270 * assuming this was only gain that year Source: Ernst & Young (see page 281) UPI P ns oms Inhj itanc Cal ndar