How are Asset valuations calculated?

Until 2024:

• Box 3 tax was based on a fictitious (assumed) return; actual income didn’t matter.

Transitional rules (2025–2027):

• Tax based on assumed return, but you may report actual lower returns with proper documentation.

From 2028 onward:

• Taxation is fully based on actual returns:

  • Interest from savings

  • Dividends

  • Rental income

  • Capital gains (including unrealized gains, except for some real estate)

Why it changed:

• The Supreme Court ruled taxing based on fictitious returns violated property rights.

• New system aims to be fairer but more complex.