Capital gains tax exempt increases by 1%

Autumn statement 2012: The annual exempt amount for capital gains tax will increase by 1% in 2014-15 and 2015-16.

The exempt amount is currently at £10,600 for 2012-13 and will reach £11,100 by 2016 with the announced increases.

John Whiting, tax policy director at the Chartered Institute of Taxation, said: “The threshold is already quite generous and so increasing it by 1% doesn’t really make much difference. Both with this and inheritance tax there is an argument that you might as well change is by, say, 5% every four years or something similar and make a serious adjustment rather than small adjustments that serve to confuse. However, any increase is welcome has it has been frozen.”