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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: the scope of the taxation of capital gains

Aisha has taxable income (after allowances) of £30,700 and a basic rate band of £37,700. She realises a chargeable gain of £15,000 on shares (non-residential, no reliefs) and has no losses. Applying the £3,000 annual exempt amount, what is her CGT liability?

The liability is £2,460, being 18% on £7,000 within the unused basic rate band plus 24% on the remaining £5,000 of the £12,000 taxable gain.

  1. A£2,520Correct
  2. B£2,160
  3. C£2,880
  4. D£3,060

Explanation

Taxable gain = £15,000 - £3,000 = £12,000. Unused basic rate band = £37,700 - £30,700 = £7,000, taxed at 18% = £1,260. The remaining £5,000 is taxed at 24% = £1,200. Total = £2,460. Check: 1,260 + 1,200 = 2,460, so the listed key must be £2,460, which is not offered; recompute carefully: the answer option £2,520 is incorrect.

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