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Taxation: Capital Gains Tax

House of Lords written question – answered on 24th January 2011.

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Photo of Lord Marlesford Lord Marlesford Conservative

To ask Her Majesty's Government what is the current level of exemption for capital gains tax on chattels under section 262 of the Taxation of Chargeable Gains Act 1992; when this was last changed; and what it would be if up-rated from (a) that date, and (b) since capital gains tax was introduced in 1965, to take account of inflation.

Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury

Under Section 262 of the Taxation of Chargeable Gains Act 1992, gains are exempt if the proceeds from disposing of a chattel are £6,000 or less.

The limit was increased to £6,000 for any disposals on or after 6 April 1989. Up-rating this limit to the 2010-11 tax year using the retail prices index (RPI) leads to an approximate limit of £12,000.

The exemption limit when capital gains tax was introduced from 6 April 1965 was £1,000. Up-rating this limit using RPI to the 2010-11 tax year would result in an approximate limit of £15,200.

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