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Section 1K: Annual exempt amount

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part 1: Capital gains tax and corporation tax on chargeable gains — Chapter 1: Capital gains tax

If an individual is (or, apart from this section, would be) 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 them).

The annual exempt amount for a tax year is £3,000.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The deduction of the annual exempt amount—

is made after the deduction of allowable losses accruing in the tax year, but
is made before the deduction of allowable losses accruing in a previous tax year or, if section 62 applies, in a subsequent tax year.

The annual exempt amount may be deducted from gains in whatever way is most beneficial to a person chargeable to capital gains tax (irrespective of the rate of tax at which the gains would otherwise have been charged).

An individual is not entitled to an annual exempt amount for a tax year if

section 809B of ITA 2007 (claim for remittance basis) applies to the individual for the year , or
the individual makes a foreign gain claim, a foreign income claim or a foreign employment election for that tax year.

For the tax year in which an individual dies and for the next two tax years, this section applies to the individual's personal representatives as if references to the individual were to those personal representatives.

This section applies in relation to trustees in accordance with the provision made by Schedule 1C.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.