P235 CJ AX 2@2/*@Su^ 01 Dec 2s:)1/3n 1O3 O CAPITAL GAINS TAX You work out the taxable gain or allowable loss on selling an asset by deducting the cost of the asset from the proceeds you get when you sell it. Gains and losses are netted off. The annual exemption of £6,300 for an individual is then deducted. Any remaining gain is taxed at your own top rate of income tax. Only gains made since 31 March 1982 are taxable. A transfer between spouses is not taxable. Source: Ernst & Young (see page 271) PURCHASED LIFE RATES MOVED TO 265 Pension TaxIndjx Inc Tax Main MenuP235 CEEFAX 2 265 Sun 01 Dec 23:53/34 PURCHASED LIFE RATES FOR WOMEN 2/2 LEVEL FEMALE FEMALE FEMALE ANNUITY 70 75 80 Friends Provident £ 1117 1268 1396 Standard Life £ 1090 1259 1399 Co-op Insurance £ 1068 1210 1482 Equitable Life £ 1068 1209 1472 GROSS ANNUAL ANNUITY FOR £10,000 Guaranteed 5 yrs, mthly in arrears. Source: Annuity Direct UPI Link Notes MonjyNiws Main MenuP235 CJ FAX 2@2/k Su^ 01 Dec 2s:k4/26 3/3 U EXAMPLE CAPITAL GAINS TAX CALCULATION Asset bought in June 1990 for £15,000 a^d sold in June 1995 for £30,000. UPI for June 1990 was 126.7: UPI for June 1995 was 149.8. Indexation allowance: (149.8-126.7) ÷ 126.7 = 0.182 p.182 x 15,000 = £2L730 Capital gain: proceeds 30,000 less cost plus indexation (17L730) gain 12,270 exemption * 6,000 taxable 6,270 * assuming this was only gain that year Source: Ernst & Young (see page 271) PURCHASED LIFE RATES MOVED TO 265 Pension TaxIndjx Inc Tax Main Menu