Annex III

CAPITAL GAINS TAX : EXEMPT ASSETS

1. An individual's only or main residence (subject to various conditions ).

2. Chattels which are wasting assets (i.e. having a predictable life of less than 50 years),unless used in a business.

3. Non wasting chattels where disposal proceeds do not exceed £6,000.

4. Gilt edged securities and qualifying company loan stock.

5. SAYE contracts, savings certificates and premium bonds.

6. Prizes and betting winnings.

7. Private motor cars, including veteran and vintage cars.

8. Foreign currency for an individual's own spending and maintenance of assets abroad.

9. Decorations for valour if disposed of by the original holder or legatees (but not by a purchaser).

10. Compensation or damages for any wrong or personal injury (and by concession, certain compensation from foreign governments for property lost or confiscated). suffered by an individual to his person or in his profession or vocation.

11. Life assurance policies but only in the hands of the original owner or beneficiaries.

12. Gifts of assets that are considered by the Treasury to be of national, historic or scientific interest but breach of any conditions imposed will nullify the capital gains tax exemption.

13. Gifts to charities.

14.Debts.