(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.
(1)In section 169N of TCGA 1992 (amount of relief: general)—
(a)in subsection (4) for “£5 million” substitute “ £10 million ”, and
(b)in subsection (4A) for “£5 million” substitute “ £10 million ”.
(2)The amendments made by this section have effect in relation to qualifying business disposals occurring on or after 6 April 2011.