ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: the basic principles of computing gains and losses
Hana, a UK resident, made chargeable gains of £53,000 in the tax year and has no losses or reliefs. Her taxable income after allowances is £27,700. Using the ATX-UK tax tables, what is her capital gains tax liability?
After the £3,000 exempt amount, £50,000 is taxable. The first £10,000 uses the unused basic rate band at 18% (£1,800) and the other £40,000 is taxed at 24% (£9,600), a total of £11,400.
- A£9,000
- B£10,200Correct
- C£11,400
- D£12,000
Explanation
Taxable gain is £53,000 - £3,000 = £50,000. Unused basic rate band is £37,700 - £27,700 = £10,000, taxed at 18% = £1,800. The remaining £40,000 is at 24% = £9,600. Total £11,400. So the correct option is £11,400, not the one keyed.
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