Capital Gains Tax (Annual Exempt Amount) (No. 2) Order 1993

JurisdictionUK Non-devolved
CitationSI 1993/2947

1993No. 2947

TAXES

The Capital Gains Tax (Annual Exempt Amount) (No. 2) Order 1993

30thNovember1993

The Treasury, in pursuance of section 3(4) of the Taxation of Chargeable Gains Act 1992( a), hereby make the following Order:

1. This Order may be cited as the Capital Gains Tax (Annual Exempt Amount) (No. 2) Order 1993.

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 1994-95, is £6,000.

Tim Wood

Timothy Kirkhope

30th November 1993

Two of the Lords Commissioners of Her Majesty's Treasury

(a) 1992 c.12; section 3 was amended by section 83 of the Finance Act 1993 (c.34).

EXPLANATORY NOTE

(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 1994-95 unless Parliament otherwise determines.

By virtue of section 82 of the Finance Act 1993, the exempt amount for the year 1993-94 was specified as £5,800. The amount of £6,000 is the amount for 1993-94 increased by the amount of the percentage increase in the retail prices index for September 1993 over that for September 1992, 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 1992 is 139.4 and for September 1993 141.9 (based on January 1987 as 100) (see Table 6.1 on page S64 of the November 1993 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 requires, satisfy his obligation to...

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