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ACCA Applied Skills · Taxation (UK) · Gains and losses on the disposal of movable and immovable property

In the tax year 2026/27, Priya, a UK resident individual, sold a painting and made a chargeable gain of £9,000. In the same year she sold a antique vase and made an allowable capital loss of £4,000. She has no other disposals and no losses brought forward. What is her taxable gain for the year, before applying the annual exempt amount?

The taxable gain before the annual exempt amount is £5,000. Current year capital losses must be set against current year gains in full, so £9,000 less £4,000 gives £5,000. The annual exempt amount is applied only afterwards.

  1. A£5,000Correct
  2. B£9,000
  3. C£2,000
  4. D£13,000

Explanation

Current year losses are set against current year gains in full: £9,000 - £4,000 = £5,000. The annual exempt amount of £3,000 is then deducted, leaving £2,000 taxable. The option £2,000 is wrong as the question asks for the figure before the annual exempt amount.

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