Capital Gains Tax (Annual Exempt Amount) Order 1994
| Jurisdiction | UK Non-devolved |
| Citation | SI 1994/3008 |
| Year | 1994 |
1994 No. 3008
TAXES
The Capital Gains Tax (Annual Exempt Amount) Order 1994
Made 29th November 1994
The Treasury, in pursuance of section 3(4) of the Taxation of Chargeable Gains Act 19921, hereby make the following Order:
1. This Order may be cited as the Capital Gains Tax (Annual Exempt Amount) Order 1994.
2. The amount specified, which by virtue of section 3 of the Taxation of Chargeable Gains Act 1992 is, unless Parliament otherwise determines, the exempt amount for the year 1995-96, is £6,000.
Timothy Kirkhope
Tim Wood
Two of the Lords Commissioners of Her Majesty’s Treasury
29th November 1994
(This note is not part of the Order)
This Order specifies £6,000 as the amount which, under section 3 of the Taxation of Chargeable Gains Act 1992 (“section 3” and “the 1992 Act” respectively), is the exempt amount for the year 1995-96 unless Parliament otherwise determines.
By virtue of section 90 of the Finance Act 1994 (c. 9), the exempt amount for the year 1994-95 was specified as £5,800. The amount of £6,000 is the amount for 1994-95 increased by the amount of the percentage increase in the retail prices index for September 1994 over that for September 1993, and rounded up to the nearest £100 in accordance with section 3(3) (as amended by section 83 of the Finance Act 1993).
Under section 288(2) of the 1992 Act, “retail prices index” has the same meaning as in the Income Tax Acts; and “retail prices index” is defined in section 833(2) of the Income and Corporation Taxes Act 1988 (c. 1), as amended by paragraph 5 of Schedule 2 to the Transfer of Functions (Economic Statistics) Order 1989 (S.I. 1989/992), as the “general index of retail prices (for all items) published by the Central Statistical Office of the Chancellor of the Exchequer”. The retail prices index for September 1993 is 141.9 and for September 1994 145.0 (based on January 1987 as 100) (see Table 6.4 on page S56 of the November 1994 number ofEmployment Gazette, the official journal of the Department of Employment).
The exempt amount has several applications for capital gains tax. Under section 3(1) an individual’s gains for a year of assessment are chargeable to tax only to the extent that they exceed the exempt amount; and under section 3(6) an individual may, if appropriate, and unless an inspector otherwise...
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