Capital Gains Tax (Annual Exempt Amount) Order 1990
| Jurisdiction | UK Non-devolved |
| Citation | SI 1990/681 |
1990 No. 681
TAXES
The Capital Gains Tax (Annual Exempt Amount) Order 1990
Made 20th March 1990
The Treasury, in pursuance of section 5(1C) of the Capital Gains Tax Act 19791, hereby make the following Order:
1. This Order may be cited as the Capital Gains Tax (Annual Exempt Amount) Order 1990.
2. The amount specified, which by virtue of section 5 of the Capital Gains Tax Act 1979 is, unless Parliament otherwise determines, the exempt amount for the year 1990-91, is £5,400.
Stephen Dorrell
Thomas Sackville
Two of the Lords Commissioners of Her Majesty’s Treasury
20th March 1990
(This note is not part of the Order)
This Order specifies £5,400 as the amount which, under section 5 of the Capital Gains Tax Act 1979 (“section 5”) (as amended by section 77 of the Finance Act 1980 (c. 48), section 80 of the Finance Act 1982 and section 122 of the Finance Act 1989 (c. 26)), is the exempt amount for the year 1990-91 unless Parliament otherwise determines. The exempt amount for the year 1989-90 was fixed by section 122 of the Finance Act 1989 at £5,000. The amount of £5,400 is the amount for 1989-90 increased by the amount of the percentage increase (7.7%) in the retail prices index for December 1989 over that for December 1988. The amount has been rounded up to the nearest £100 in accordance with section 5(1B).
The “retail prices index” is defined in section 24(8) of the Finance Act 1980 (as extended to the Capital Gains Tax Act 1979 (“the 1979 Act”) by section 80(4) of the Finance Act 1982 and 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 December 1988 is 110.3 and for December 1989 118.8 (based on January 1987 as 100). (Table 6.1 on page S.54 of the February 1990 number of the Employment Gazette, the official journal of the Department of Employment.)
The exempt amount has several applications for capital gains tax. Under section 5(1) an individual’s gains for a year of assessment are chargeable to tax only to the extent that they exceed the exempt amount. Under paragraphs 4 to 6 of Schedule 1 to the 1979 Act ( “paragraphs 4 to 6”) (as amended by...
To continue reading
Request your trial