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

Priya, an individual, sells 5,000 quoted shares in Zeta plc on 12 November 2025. She has bought Zeta plc shares on several earlier dates, including some on 12 November 2025 itself and some on 25 November 2025. Which sequence correctly shows the order in which her disposal is matched with acquisitions?

An individual's share disposal is matched first with shares bought on the same day, then with shares bought within the next 30 days, and only then with the Section 104 pool. First-in first-out does not apply to individuals.

  1. AAcquisitions on the same day, then acquisitions in the following 30 days, then the Section 104 poolCorrect
  2. BThe Section 104 pool, then acquisitions on the same day, then acquisitions in the following 30 days
  3. CAcquisitions in the following 30 days, then acquisitions on the same day, then the Section 104 pool
  4. DThe earliest acquisitions first, then later ones, on a first-in first-out basis

Explanation

For individuals, a disposal is matched first with shares acquired on the same day, then with shares acquired in the following 30 days, and finally with the Section 104 pool. The 25 November purchase falls within 30 days and is matched before the pool. First-in first-out is not the rule for individuals.

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