Skip to content

ACCA Applied Skills · Taxation (UK) · Gains and losses on the disposal of shares and securities

Dev sold a qualifying corporate bond in Kestrel plc on 10 January 2026 for £40,000. He bought it on 5 May 2021 for £28,000. He has no other disposals in 2025/26. What is Dev's chargeable gain before the annual exempt amount?

The chargeable gain is nil. A qualifying corporate bond is an exempt asset for capital gains tax, so the £12,000 profit on sale is not chargeable, and the annual exempt amount of £3,000 is not needed against it.

  1. A£12,000
  2. B£9,000
  3. C£0Correct
  4. D£40,000

Explanation

Qualifying corporate bonds are exempt assets for capital gains tax. The £12,000 economic gain (£40,000 - £28,000) is therefore not chargeable. £9,000 wrongly deducts the annual exempt amount of £3,000 from an exempt gain.

Did you get it right without looking?

One question tells you little. A timed set on Gains and losses on the disposal of shares and securities shows your real accuracy, how long you take and where you lose marks.

Practise Gains and losses on the disposal of shares and securitiesFree diagnostic mock

More Gains and losses on the disposal of shares and securities questions