P235 CJ FAX 2 27u Sun 20 Jan 23:25/07 1/3 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 (£6,500 in 1997/98) 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 Son 19 Jan 23:19/17 PURCHASED LIFE RATES FOR WOMEN 2/2 LEVEL FEMALE FEMALE FEMALE ANNUITY 70 75 80 Friends Provident £ 1117 1268 1472 Standard Life £ 1073 1242 1466 Equitable Life £ 1040 1215 1478 Carlyle Life £ 1068 1210 1399 GROSS ANNUAL ANNUITY FOR £10,000 Guaranteed 5 yrs, mthly in arrears. Source: Annuity Direct UPI Link Notes MonjyNiws Main MenuP235 CJ AX 2 275 Sun 20 Jan 23:12/15 3/3 EXAMPLE CAPITAL GAINS TAX CALCULATION Asset bought in June 1990 for £15,000 and sold in June 1996 for £30,000. UPI for June 1990 was 126.7: UPI for June 1996 was 153.0. Indexation allowance: (153.0-12v.7)/126.7 = 0.208 0.208 x 15,000 = £3,120 Capital gain: proceeds 30,000 less cost plus indexation (18,120). gain 11,880 exemption* (6,300) taxable 5,580 * assuming only gain that year Travel 430 Front page 100 Pension TaxIndjx Inc Tax Main Menu