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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: gains and losses on the disposal of shares and securities

Marcus holds a Section 104 pool of 3,000 shares in Corvid plc with a total cost of £6,000. On 10 December 2025 he sold 2,000 of the shares for £10,000. On 20 December 2025 he bought 800 Corvid plc shares for £3,200. What is his chargeable gain on the 10 December 2025 disposal?

The gain is £4,400. The 800 shares bought within the next 30 days are matched first at £3,200, and the other 1,200 shares come from the pool at £2 each, costing £2,400. Total cost of £5,600 deducted from proceeds of £10,000 leaves £4,400.

  1. A£4,400Correct
  2. B£6,000
  3. C£6,800
  4. D£4,000

Explanation

The 800 shares bought within 30 days are matched first at their actual cost of £3,200. The remaining 1,200 shares come from the pool at £2 each, which is £2,400. Total cost is £5,600, so the gain is £10,000 − £5,600 = £4,400. Ignoring the 30-day rule and matching all 2,000 shares to the pool gives cost of £4,000 and a gain of £6,000.

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