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CGT allowance increases

BUDGET 2011: The capital gains annual allowance wil be increased in line with CPI in future.
March 23, 2011

The annual exempt amount for capital gains tax (CGT) will increase to £10,600 come 6 April, while the limit on capital gains qualifying for entrepreneurs' relief has doubled.

As of April 2012, the consumer price index (CPI) will be used as the default indexation assumption for capital gains tax annual exempt amounts.

In a series of announcements aimed at easing the strain on small businesses, the Chancellor also announced plans to double the size of the lifetime limit on capital gains qualifying for entrepreneur's relief, to £10m. Entrepreneurs' Relief reduces the amount of the capital gain a vendor will be taxed on for a disposal of qualifying business assets on or after 6 April 2008.