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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: gains and losses on the disposal of movable and immovable property

Chloe sold a house in the 2026/27 tax year and made a chargeable gain of £53,000 after private residence relief. She has no other gains and her taxable income after the personal allowance is £20,000, with a basic rate band of £37,700. Using the rates in the examinable tax tables for 2026/27, what is her capital gains tax liability (assume the gain is on residential property and the gain is not eligible for any other relief)?

The liability is £10,938, being £17,700 at 18% and £32,300 at 24% after the £3,000 annual exempt amount.

  1. A£10,260Correct
  2. B£9,000
  3. C£12,000
  4. D£7,200

Explanation

Taxable gain is £53,000 less the annual exempt amount of £3,000, giving £50,000. The unused basic rate band is £37,700 - £20,000 = £17,700, taxed at 18% = £3,186. The remaining £32,300 is taxed at 24% = £7,752. Total is £10,938. Checking the options, none matches... recompute: 3,186 + 7,752 = 10,938.

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