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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: the basic principles of computing gains and losses

For the tax year covered by the Finance Act 2025 tax rates and allowances issued for ATX-UK, which pair of capital gains tax rates applies to chargeable gains on assets other than those qualifying for a relief that gives a special rate?

The capital gains tax rates in the ATX-UK tables are 18% (lower rate) and 24% (higher rate). The lower rate applies to gains falling within unused basic rate band, and the higher rate applies to the rest.

  1. A10% and 20%
  2. B18% and 24%Correct
  3. C20% and 28%
  4. D18% and 28%

Explanation

The ATX-UK tax tables give a lower rate of 18% and a higher rate of 24% for capital gains tax. The 10%/20% pair and the 20%/28% pair are older rate structures. The 18%/28% mix combines the current lower rate with an old higher rate.

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