Part 1

Charges, rates, allowances etc

Capital gains tax

Annual exempt amount
8
1
Section 3 of TCGA 1992 (annual exempt amount) is amended as follows.
2
For subsection (2) substitute—
2
The exempt amount for a tax year is £10,600.
3
For subsections (3) and (4) substitute—
3
If there is a relevant increase in RPI in relation to a tax year—
a
the exempt amount is to be increased in accordance with Steps 1 and 2, and
b
subsection (2) has effect from then on (for that and subsequent tax years) as if it referred to the increased amount,
unless Parliament otherwise determines.
3A
There is a relevant increase in RPI in relation to a tax year if the retail prices index for the September before the start of the tax year is higher than it was for the previous September.
3B
Steps 1 and 2 are—
- Step 1 Increase the exempt amount for the previous tax year by the same percentage as the percentage of the relevant increase in RPI.
- Step 2 If the result of Step 1 is not a multiple of £100, round it up to the nearest multiple of £100.
4
If there is a relevant increase in RPI in relation to a tax year, the Treasury must before the start of that tax year make an order showing the amount arrived at as a result of Steps 1 and 2.
4
The amendment made by subsection (2) has effect for the tax year 2011-12 and subsequent tax years.
5
For the tax year 2011-12, section 3(3) of TCGA 1992 (indexation) does not apply.
6
The amendment made by subsection (3) has effect for the tax year 2012-13 and subsequent tax years.