Financial Jargon Buster Dictionary
This glossary is provided for information only and is not regulated by the Financial Services Authority.
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Annual Exemption (for Capital Gains Tax)
Each tax-paying individual in the UK is entitled to an annual exemption of £8,500 (2005/2006) tax year rate) on capital gains each year. This means that they can make this level of gains (on for instance Share sales) without paying Capital Gains Tax.
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