PART IIIIncome Tax, Corporation Tax and Capital Gains Tax
CHAPTER IIICapital Gains
80Increase and indexation of annual exempt amount
(1)
In section 5 of the M1Capital Gains Tax Act 1979 (exemption for first £3,000 of gains)—
(a)
for " £3,000 ", in each place where it occurs, there shall be substituted " the exempt amount for the year "; and
(b)
for " £5,000", where it occurs in subsection (5)(M, there shall be substituted " an amount equal to twice the exempt amount for the year. "
(2)
“(1A)
Subject to subsection (1B) below, the exempt amount for any year of assessment shall be £5,000.
(1B)
If the retail prices index for the month of December preceding the year 1983-84 or any subsequent year of assessment is higher than it was for the previous December, then, unless Parliament otherwise determines, subsection (1A) above shall have effect for that year as if for the amount specified in that subsection as it applied for the previous year (whether by virtue of this subsection or otherwise) there were substituted an amount arrived at by increasing the amount for the previous year by the same percentage as the percentage increase in the retail prices index and, if the result is not a multiple of £100, rounding it up to the nearest amount which is such a multiple.
(1C)
The Treasury shall, before the year 1983-84 and each subsequent year, make an order specifying the amount which by virtue of this section is the exempt amount for that year; and any such order shall be made by statutory instrument”.
(3)
In Schedule 1 to that Act
(a)
the heading shall be changed to " APPLICATION OF EXEMPT AMOUNT IN PARTICULAR CASES ";
(b)
for the words " the amount of £3,000 ", where they occur in paragraphs 2(1) and 5(1D), and for " £3,000 " in every other place where it occurs, there shall be substituted the words " the exempt amount for the year ";
(c)
for " £300 ", where it occurs in paragraphs 5(1B) and 6(4), there shall be substituted the words " one tenth of that exempt amount ";
(d)
for " £1,500 ", in each place where it occurs in sub-paragraphs (2) and (4) of paragraph 6, and for " the amount of £1,500 ", where it occurs in sub-paragraph (6) of that paragraph, there shall be substituted the words " one half of the exempt amount for the year "; and
(e)
in sub-paragraph (3) of paragraph 6 for the words from " £5,000 " onwards there shall be substituted the words " ' twice the exempt amount for the year' of ' one half of the exempt amount for the year' and ' the exempt amount for the year ' respectively ".
(4)
In section 24(8) of the M2Finance Act 1980 (definition of " retail prices index " for the purposes of the Income Tax Acts) after the word " Acts " in each place where it occurs, there shall be inserted the words " or the M3Capital Gains Tax Act 1979 ".
(5)
This section has effect for the year 1982-83 and subsequent years of assessment.