Capital gains tax
8Annual exempt amount
1
Chapter 1 of Part 1 of the Taxation of Chargeable Gains Act 1992 (capital gains tax) is amended as follows.
2
In section 1K (annual exempt amount), in subsection (2) (which specifies the amount of the annual exempt amount for a tax year), for “£12,300” substitute “£6,000”
.
3
The amendment made by subsection (2) has effect for the tax year 2023-24.
4
In section 1K(2) (as amended by subsection (2)), for “£6,000” substitute “£3,000”
.
5
The amendment made by subsection (4) has effect for the tax year 2024-25 and subsequent tax years.
6
Omit section 1L (increasing annual exempt amount to reflect increases in CPI).
7
In section 8C of the Taxes Management Act 1970 (returns so far as relating to capital gains tax), in subsection (1)(b), for “four times that annual exempt amount” substitute “£50,000”
.
8
In consequence of the amendments made by this section—
a
in section 287(4) of the Taxation of Chargeable Gains Act 1992 (orders and regulations to which no Parliamentary procedure applies), omit “1L(2) or”, and
b
in section 40 of the Finance Act 2021 (which specifies the annual exempt amount in section 1L of the Taxation of Chargeable Gains Act 1992 as £12,300 for tax years up to 2025-26), for the words from “the tax years” to “2025-26” substitute “the tax years 2021-22 and 2022-23”
.
9
The amendments made by subsections (6) to (8) have effect for the tax year 2023-24 and subsequent tax years.