Capital Gains Tax (Annual Exempt Amount) Order 1985
| Jurisdiction | UK Non-devolved |
| Citation | SI 1985/428 |
1985 No. 428
TAXES
The Capital Gains Tax (Annual Exempt Amount) Order 198519thMarch 1985
The Treasury, in pursuance of section 5(1C) of the Capital Gains Tax Act 1979(a), hereby make the following Order:—
1. This Order may be cited as the Capital Gains Tax (Annual Exempt Amount) Order 1985.
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 1985-86 is £5,900.
Donald Thompson, A. G. Hamilton, Two of the Lords Commissioners of Her Majesty's Treasury.
19th March 1985.
(a) 1979 c. 14; section 5(1C) was inserted by section 80(2) of the Finance Act 1982 (c. 39).
EXPLANATORY NOTE
(This Note is not part of the Order.)
This Order specifies £5,900 as the amount, which under section 5 of the Capital Gains Tax Act 1979 (as amended by section 80 of the Finance Act 1982), is the exempt amount for the year 1985-86 unless Parliament otherwise determines. The amount of £5,900 is the amount for 1984-85 (£5,600: SI 1984/343) increased by the amount of the percentage increase (4.580%) in the retail prices index for December 1984 over that for December 1983. The figure 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 (c. 48) (as extended to the Capital Gains Tax Act 1979 by section 80(4) of the Finance Act 1982) as "the general index of retail prices (for all items) published by the Department of Employment". The retail prices index for December 1983 is 342.8 and for December 1984 358.5 (based on January 1974 as 100). (Table 6.4 of the Department of Employment Gazette, January 1985).
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 section 5(1) also applies, subject to detailed rules, to personal representatives, trustees of settlements for mentally disabled persons or persons in receipt of attendance allowance, and, as to one half of the exempt amount, trustees of other settlements.
Under section 5(5) an individual may, if appropriate, and unless an Inspector otherwise requires, satisfy his obligation to make a return of chargeable gains by stating that his gains do not exceed the...
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