ACCA Applied Skills · Taxation (UK) · The scope of the taxation of capital gains
What is the annual exempt amount for capital gains tax for an individual according to the tax tables provided for the exam?
The annual exempt amount for capital gains tax is £3,000. This is the amount of net chargeable gains each individual can realise in a tax year without paying tax. The £1,000,000 figure is the lifetime limit for business asset disposal relief, not the annual exemption.
- A£3,000Correct
- B£6,000
- C£12,300
- D£1,000,000
Explanation
The tax tables state that the capital gains tax annual exempt amount is £3,000. £1,000,000 is the lifetime limit for business asset disposal relief and investors' relief, not the annual exempt amount. The other figures are not given in the tables.
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