SI 2020/333 – The Capital Gains Tax (Annual Exempt Amount) Order 2020

Released 24 March 2020

SI 2020/333 increases the annual exempt amount in TCGA 1992, s. 1K(2) to £12,300 for the tax year 2020–21.

The Capital Gains Tax (Annual Exempt Amount) Order 2020 sets the annual exempt amount for the purposes of the Taxation of Chargeable Gains Act 1992, s. 1K as £12,300 for the tax year 2020–21. TCGA 1992, s. 1K provides that if an individual is (or would be but for s. 1K) 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 those chargeable gains). S. 1K(2) specifies the annual exempt amount for the tax year. TCGA 1992, s. 1L provides that if the consumer prices index (CPI) for the September before the start of a tax year is higher than it was for the previous September the annual exempt amount is increased accordingly by the same percentage as the rise in that index, rounded up to the nearest £100. TCGA 1992, s. 1L(2) requires the Treasury to make an Order before the start of any tax year for which the annual exempt amount is increased by s. 1L, setting out the annual exempt amount for that year. The order was made on 23 March 2020.

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