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

In 2025/26 Nia, an additional-rate taxpayer, made a gain of £23,000 on quoted ordinary shares and a loss of £9,000 on a qualifying corporate bond. She has no other disposals or losses. What is her capital gains tax liability for 2025/26?

The liability is £4,800. The loss on the qualifying corporate bond is not allowable because the bond is an exempt asset. The £23,000 share gain less the £3,000 annual exempt amount leaves £20,000, taxed at the 24% higher rate.

  1. A£3,360
  2. B£4,800Correct
  3. C£4,320
  4. D£5,520

Explanation

The bond loss is not allowable as qualifying corporate bonds are exempt assets, so it is ignored. Gain £23,000 less annual exempt amount £3,000 = £20,000, taxed at the higher rate of 24% = £4,800. Option A wrongly deducts the loss: (23,000 - 9,000 - 3,000) x 24% would be £2,640, and £3,360 uses 14% on £24,000, so neither is correct.

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