F1Part 1Capital gains tax and corporation tax on chargeable gains
Chapter 1Capital gains tax
Annual exempt amount
1KAnnual exempt amount
1
If an individual is (or, apart from this section, would be) chargeable to capital gains tax for a tax year on chargeable gains, the annual exempt amount for the year is to be deducted from those gains (but no further than necessary to eliminate them).
2
The annual exempt amount for a tax year is F2£3,000.
3
The annual exempt amount may not be deducted from chargeable gains to which paragraph 2 of Schedule 1 applies (foreign gains of non-UK domiciled individuals accruing in one year and remitted in later year).
4
The deduction of the annual exempt amount—
a
is made after the deduction of allowable losses accruing in the tax year, but
b
is made before the deduction of allowable losses accruing in a previous tax year or, if section 62 applies, in a subsequent tax year.
5
The annual exempt amount may be deducted from gains in whatever way is most beneficial to a person chargeable to capital gains tax (irrespective of the rate of tax at which the gains would otherwise have been charged).
6
An individual is not entitled to an annual exempt amount for a tax year if section 809B of ITA 2007 (claim for remittance basis) applies to the individual for the year.
7
For the tax year in which an individual dies and for the next two tax years, this section applies to the individual's personal representatives as if references to the individual were to those personal representatives.
8
This section applies in relation to trustees in accordance with the provision made by Schedule 1C.
Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2