F1Part 1Capital gains tax and corporation tax on chargeable gains
Chapter 1Capital gains tax
Annual exempt amount
1LIncreasing annual exempt amount to reflect increases in CPI
(1)
If the consumer prices index for the September before the start of a tax year is higher than it was for the previous September—
(a)
the annual exempt amount is increased by the same percentage as the rise in that index (rounded up to the nearest £100), and
(b)
section 1K(2) has effect for the tax year (and subsequent tax years) as if it referred to the increased amount.
(2)
If, as a result of this section, the annual exempt amount for a tax year increases, the Treasury must before the start of the tax year make an order showing the increased amount.