Part I Capital gains tax and corporation tax on chargeable gains
Capital gains tax
C1C113 Annual exempt amount.
1
An individual shall not be chargeable to capital gains tax in respect of so much of his taxable amount for any year of assessment as does not exceed the exempt amount for the year.
F51A
Subsection (1) does not apply to an individual for a tax year if section 809B of ITA 2007 (claim for remittance basis to apply) applies to the individual for that year.
F11C2C3C4C5C6C7C8C9C10C12C132
The exempt amount for a tax year is £10,600.
F12C143
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.
F25
For the purposes of this section an individual’s taxable amount for any year of assessment is the amount F8which is (apart from this section) the amount for that year on which that individual is chargeable to capital gains tax in accordance with section 2.
5A
Where, in the case of any individual, the amount of the adjusted net gains for any year of assessment is equal to or less than the exempt amount for that year, no deduction shall be made for that year in respect of—
a
any allowable losses carried forward from a previous year; or
b
any allowable losses carried back from a subsequent year in which the individual dies.
5B
Where, in the case of any individual, the amount of the adjusted net gains for any year of assessment exceeds the exempt amount for the year, the deductions made for that year in respect of allowable losses falling within subsection (5A)(a) or (b) above shall not be greater than the excess.
5C
In subsections (5A) and (5B) above the references, in relation to any individual’s case, to the adjusted net gains for any year are references to the amount given in his case by—
a
taking the amount for that year from which the deductions for which section 2(2)(a) and (b) provides are to be made;
F6aa
if section 16ZB (certain chargeable gains charged on remittance basis) applies for that year, deducting the amount of the relevant gains (within the meaning of that section),
b
deducting F7(from the amount mentioned in paragraph (a), as reduced under paragraph (aa)) only the amounts falling to be deducted in accordance with section 2(2)(a); and
F36
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7
For the year of assessment in which an individual dies and for the next 2 following years, F4subsections (1) to (5C) above shall apply to his personal representatives as they apply to an individual.
F17A
As they apply by virtue of subsection (7) above—
a
subsection (5A) has effect with the omission of paragraph (b), and
b
subsection (5B) has effect with the omission of the words “or (b)”.
8
Schedule 1 shall have effect as respects the application of this section to trustees.