P235 CEEFAX 2 275 Sun 13 Sep 21:42/08  Wj $kj $kj 'k W"£££"£££"£££  CAPITAL GAINS TAX 2/4 You can reduce thj taxable gain furthjr by claiming: * thj cost of any improviments * indjxation allowance, which offsit; thj inflationary element of thj gain. This can bj claimed on thj original cost and thj cost of improvements. See pagj 276 for retail price indjx figures dating back to 1982. Source: Ernst & Young (see page 270) Source: Ernst & Young (see page 271) Mortgages & Savings Guide 250 Pension TaxIndex Inc Tax Main Menu

P235 CEEFAX 2 275 Sun 13 Sep 21:24/22Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££   EXAMPLE CAPITAL GAINS TAX CALCULA 3/4 Asset bought in June 1990 for £15,000 and sold in Junj 1:96 for £30,000. RPI for June 1990 was 126.7: RPI for June 1996 was 153.0. Indjxation allowance: (153.0-126.7)/126.7 = 0↑208 0.208 x 15,000 = £3,120 Capital gain: proceeds 30,000 less cost plu; indjxation (18,1 0  gain 11,880 exemption* (6,300) taxable 5,580 * assuming only gain that year Travel 430 Front page 100 Pension TaxIndex Inc Tax Main Menu