P275 CJEFAX 2 275 Sun 16 Feb 21:51/31 1O3 WU $kj $kj 'k W O C P T G X ou wo o o allowable loss on selling an asset by d ducting t j cost of the sse from the proceeds you get wh n you sell it. Gains and losses ar netted off. The annual exemption of £6,300 (£6,500 in 1:97/98) for an individual is then deducted. Any rim ining gain is taxed at you own top rate of income tax. Only gains made s nce 31 March 1982 are taxable. A transfer between spouses is not taxa li. So rc Ernst & Yo n (sj p 27 ) PURCHASED LIFE RBTJS MOVED TO 265 Pension TaxIndjx Inc Tbx Main MenuP275 CEEFAX 2 275 Sun 16 Fed 21:54/37 2O3 U O CAPET L GAIN T X You can reduce the taxable gain furthjt ez claiming: * the cost of any improvements * indexation allowance, which offsets the inflationary element of the gain. This can bj claimed on the original cos t co t o m o t . See pbge 276 for retail price index figures dating back to 1982. Source: Ernst & Young (see page 271) PU CHASED LIF RA ES MOVED T 265 Travel 430 Front page 100 P ns on T xInd x nc T Ma n M nuP275 CEEFAX 2 275 Sun 16 Feb 21:52/05 3/3 U V O EXAMPLE CAPITAL GAINS TAX CALCULATION Asset bought in June 1990 for £15,000 and sold in June 1996 fo £30,000. UPI for June 1990 was 126.7: UPI for June 1:96 was 153.0. Indexation allowance: (153.0-126.7)/126.7 = 0.208 0.208 x 1k,000 = £3,12p Capital gain: proceeds 30 000 less cost plus indexation (18L120). 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