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ACCA Applied Skills · Taxation (UK) · The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of capital assets

Imran made a gain of £1,040,000 on a disposal of his sole trader business qualifying for business asset disposal relief; he has made no earlier claims. He has also made a separate gain of £30,000 on shares that do not qualify. He has no losses, the annual exempt amount is £3,000 and is set against the gain taxed at the highest rate, and he is a higher rate taxpayer. What is his total capital gains tax for 2025/26?

Working gives £156,080, which matches no option, so this question is flawed.

  1. A£165,360
  2. B£164,640Correct
  3. C£153,000
  4. D£167,000

Explanation

Qualifying gain £1,040,000: £1,000,000 at 14% = £140,000 and £40,000 excess at 24%. Shares gain £30,000 at 24%. Total at 24% is £70,000, less annual exempt amount £3,000 = £67,000 x 24% = £16,080. Total £156,080. This does not match any option, so the key is unreliable.

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