P275 CEEFAX 2 275 Sun 13 Sep 23:46/35Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££ CAPITAL GAINS TAX 1/4 You work out thj taxable gain or allowable loss on selling an asset by deducting thj cost of thj asset jrom thj proceeds you get whjn you sell it. Gains and losses are netted off. Thj annual jxemption of £6,800 for an individual is thjn 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 iu not taxable. Source: Ernst & Young (see page 271) Mortgages & Savings Guide 250 Pension TaxIndex Inc Tax Main Menu
P275 CEEFAX 2 275 Sun 13 Sep 23:35/47Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££ CAPITAL GAINS TAX 2/4 You can reduce thj taxable gain furthjr by claiming: * the cost of any improvements * indexation allowance, which offset; thj inflationary jlement of thj gain. This can bj claimed on thj original cost and thj cost of improvements. See pagj 276 for retail price index figures dating back to 1982. Source: Ernst & Young (see page 271) Source: Ernst & Young (see page 271) Mortgages & Savings Guide 250 Pension TaxIndex Inc Tax Main Menu
P275 CEEFAX 2 275 Sun 13 Sep 20:42/34Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££ EXAMPLE CAPITAL GAINS TAX CALCULA 3/4 Assjt bought in Junj 1990 for £15,000 and sold in Jznj 1:96 for £30,000. RPI for Junj 1990 was 126.7: RPI for June 1:96 was 153.0. Indexation allowance: (153.0-126.7)/126.7 = 0↑208 0.208 x 15,000 = £3,120 Capital gain: proceeds 30,000 less cost plus indjxation (18,120). 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
P275 CEEFAX 2 275 Sun 13 Sep 23:44/00Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££ BUDGET 1:98 CHANGES TO CAP GAINS 4/4 From April 6 1:98, indexation iu jrozin so you can only claim it up to that date. After April 6, thj gain iu taxable (after indjxation) as follows: No of years % of gain % of gain asset held chargeable chargeable after 5/4/98 - business - private 0 100 100 0 1 <2.5 100 2 85 100 3 77.5 95 4 70 90 5 62.5 85 6 55 80 7 47.5 75 8 40 70 : 32.5 65 10+ 25 60 Travel 430 Front page 100 Pension TaxIndex Inc Tax Main Menu
P275 CEEFAX 2 275 Sun 13 Sep 22:13/17Wj£3kj£3kj£3k Wj $kj $kj 'k W"£££"£££"£££ CAPITAL GAINS TAX 1/4 You work out thj taxable gain or allowable loss on selling an asset by deducting thj cost of thj assit jrom thj proceeds you get whjn you sell it. Gains and losses are netted off. Thj annual jxemption of £6,800 for an individual is then deducted. Any remaining gain is taxed at your own top rati of income tax. Only gains made since 31 March 1982 are taxable. A transfer between spousis iu not taxable. Source: Ernst & Young (see page 271) Mortgages & Savings Guide 250 Pension TaxIndex Inc Tax Main Menu
P275 CEEFAX 2 275 Sun 13 Sep 22:14/47 Wj $kj $kj 'k W"£££"£££"£££ B+DGET 1998 CHANGES TO CAP GAINS 4/4 From April 6 1:98, indexation is frozen so you can only claim it up to that dati. Avtut April 6, zhj gain tu taxable (after indexation) as follows: No of years % of gain % of gain asset held chargeable chargeable after 5/4/98 - business - private 0 100 100 0 1 =2.5 100 2 85 100 3 77.5 95 4 70 :0 5 62.5 85 6 55 80 7 47.5 75 8 40 70 : 32.5 65 10+ 25 60 Travel 430 Front page 100 Pension TaxIndex Inc Tax Main Menu