ACCA Applied Skills · Taxation (UK) · The computation of capital gains tax
In 2025/26 Hal made a chargeable gain of £8,000 and a capital loss of £1,000 in the same year. He also has capital losses of £5,000 brought forward from earlier years. The annual exempt amount is £3,000. What is the amount of losses brought forward that is carried forward to 2026/27?
Option two is not reliable as set; the correct carry forward is £1,000.
- A£4,000
- B£5,000Correct
- C£3,000
- D£0
Explanation
Current year loss is set off first: £8,000 - £1,000 = £7,000. Brought forward losses are used only to reduce the gain to the £3,000 exempt amount, so £4,000 is used. £5,000 - £4,000 = £1,000 carried forward. Correct option is therefore £1,000, not listed; see below.
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