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ACCA Applied Skills · Taxation (UK) · The computation of capital gains tax

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 also has unused capital losses of £4,000 brought forward from 2023/24. The annual exempt amount is £3,000. What amount of capital losses is carried forward to 2026/27?

Nothing is carried forward. The current year loss reduces the gain to £9,500, which exceeds the £3,000 exempt amount by £6,500, so the whole £4,000 brought forward loss is used, leaving taxable gains of £2,500 after the exempt amount.

  1. A£4,000Correct
  2. B£3,500
  3. C£6,500
  4. D£0

Explanation

Current year loss of £2,500 is set against the gain: net gain £9,500. Brought forward losses are used only to reduce the gain to the annual exempt amount: £9,500 - £3,000 = £6,500 available to absorb, so the £4,000 is fully used. Wait: the gain after the current loss is £9,500, and brought forward loss of £4,000 reduces it to £5,500, still above £3,000, so all is used and £0 carried forward.

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