Taxation of Chargeable Gains Act 1992 section 169VK

Cap on relief for disposal by an individual

Section 169VK imposes a lifetime cap of £1 million on the total gains that an individual can have taxed at the reduced investors' relief rate of capital gains tax.

• An individual has a lifetime limit of £1 million of gains eligible for the reduced investors' relief CGT rate, covering both direct disposals and trust disposals where the individual is an eligible beneficiary.
• When the current gain plus all previously relieved gains (both personal and trust-related) exceeds £1 million, only the portion that brings the running total up to £1 million qualifies for the reduced rate.
• Any part of the gain that exceeds the £1 million lifetime cap is taxed at the normal capital gains tax rates.
• Trust gains attributable to the individual count towards the cap, calculated either as the individual's proportionate share (where relief was reduced) or as the full gain on the trust disposal.