ACCA Applied Skills · Taxation (UK) · The scope of the taxation of capital gains
Daniel is a higher rate taxpayer. In 2025/26 he made a single taxable gain of £20,000 on shares, before the annual exempt amount. He has no capital losses and the gain does not qualify for any relief. Using the Finance Act 2025 tax tables, what capital gains tax is payable by 31 January 2027?
The tax is £4,080. The gain of £20,000 is reduced by the £3,000 annual exempt amount to £17,000, and as Daniel is a higher rate taxpayer the whole amount is taxed at 24%. It is due by 31 January 2027.
- A£4,080Correct
- B£4,800
- C£3,600
- D£3,060
Explanation
Gain £20,000 less annual exempt amount £3,000 = £17,000. As a higher rate taxpayer the rate is 24%, so tax is £17,000 x 24% = £4,080. £4,800 ignores the annual exempt amount. £3,060 uses the 18% rate on £17,000.
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