Page 14 - P6 Slide - Taxation - Lecture Day 1
P. 14
Where does CGT fit into tax framework?
NORMAL INCOME TAX CAPITAL GAINS TAX
• Gross income Sum of all capital gains
• Less: Exempt income Less: Sum of capital losses
• Less: Deductions - general, Less: Annual exclusion (only
specific and capital allowances individuals/special trusts)
• Less: Assessed losses Less: Prior year assessed
• Add: Taxable capital gain capital loss
Net capital Net capital
gain (if +) loss (if -)
Add: Taxable capital gain
Carried
x 80% (Co, trust)
• Less: Donation over to
x40% (Indiv)
• = TAXABLE INCOME next year
