ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

The annual exempt amount for capital gains tax for individuals for the 2023 tax year is set at £12,300. This exemption allows individuals to realize capital gains up to this amount without incurring any capital gains tax liability. This means that any gains made on the sale of assets, such as property or shares, are only taxable above this threshold.

Understanding the role of the annual exempt amount is critical in determining an individual’s tax liability on capital gains. If an individual’s total gains are below £12,300, they will not have to pay any capital gains tax. This exemption is a significant relief for taxpayers and encourages investment and asset disposal without immediate tax consequences, provided that the gains remain within this limit.

It's also important to note that this amount can change from year to year based on government policy and adjustments for inflation, which is why it's essential to verify the current figures for the relevant tax year when planning finances.