ACCA Applied Skills · Taxation (UK) · The computation of capital gains tax
In 2025/26 Omar made a chargeable gain of £5,000 and no losses in the year. He has capital losses of £7,000 brought forward. The annual exempt amount is £3,000. What is the amount of losses carried forward to 2026/27?
£5,000 is carried forward. Brought forward losses are only offset to the extent needed to reduce the gain to the £3,000 annual exempt amount, so £2,000 is used and the remaining £5,000 is carried forward.
- A£5,000Correct
- B£2,000
- C£7,000
- D£0
Explanation
Brought forward losses are used only to reduce the gain to the annual exempt amount, so £5,000 - £3,000 = £2,000 is used. £7,000 - £2,000 = £5,000 carried forward. Using the whole £5,000 gain would leave £2,000, and the exempt amount would be wasted.
Did you get it right without looking?
One question tells you little. A timed set on The computation of capital gains tax shows your real accuracy, how long you take and where you lose marks.
More The computation of capital gains tax questions
- In 2025/26 Zara, a higher rate taxpayer, made a chargeable gain of £11,000 on quoted shares and no other disposals. She has capital losses o…
- Which of the following statements about the capital gains tax annual exempt amount for 2025/26 is correct?
- In 2026/27 Amara, an additional-rate taxpayer, makes a single chargeable gain of £10,000 on a disposal of shares. She has no capital losses.…
- In 2025/26 Rena had a chargeable gain of £12,000 on a disposal in June 2025 and a capital loss of £2,500 on a disposal in January 2026. She …
- Marcus sold a business unit's freehold warehouse for £400,000 in December 2025. He had bought it for £250,000 and spent £40,000 on an extens…
- In 2025/26 Nadia, a higher rate taxpayer, made chargeable gains of £20,000 and allowable losses of £6,000 on disposals in the same tax year.…