ACCA Applied Skills · Taxation (UK) · The computation of capital gains tax
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. Using the annual exempt amount of £3,000 and the higher rate of 24%, what is her capital gains tax liability?
The liability is £1,680. The £10,000 gain is reduced by the £3,000 annual exempt amount to £7,000, and as Amara is a higher or additional-rate taxpayer the gain is taxed at 24%, giving £1,680.
- A£1,680Correct
- B£2,400
- C£1,260
- D£1,800
Explanation
Gain £10,000 less annual exempt amount £3,000 = £7,000 taxable. £7,000 × 24% = £1,680. £2,400 ignores the annual exempt amount; £1,260 wrongly uses 18%; £1,800 uses 18% with no exempt amount.
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