Annual exempt amount: example
The exempt amount for 1998-99 is £6,800.
C has gains of £8,000 and losses of £3,500 brought forward from earlier years.
The taxable amount, see CG18031, is:
|Taxable amount which is covered by the exemption||6,800|
Losses brought forward are deducted only to the extent necessary to reduce the netgains BEFORE TAPER RELIEF to the amount of the main exemption.
The losses carried forward are:
|Losses brought forward||3,500|
|Used in the year||1,200|
|Losses carried forward||2,300|
Computations for earlier years follow the same principles.