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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax and trusts

Which of the following correctly states the capital gains tax rates and the annual exempt amount that apply to an individual's chargeable gains on assets such as shares and non-residential land, as set out in the ATX-UK tax tables for the Finance Act 2025 exam period?

The ATX-UK tax tables show capital gains tax at 18% (lower rate) and 24% (higher rate), with an annual exempt amount of £3,000. The 10% and 20% rates and the £12,300 exemption are outdated, and 14% applies only to business asset disposal relief or investors' relief.

  1. ARates of 18% and 24%, with an annual exempt amount of £3,000Correct
  2. BRates of 10% and 20%, with an annual exempt amount of £3,000
  3. CRates of 18% and 24%, with an annual exempt amount of £12,300
  4. DRates of 14% and 24%, with an annual exempt amount of £6,000

Explanation

The ATX-UK tax tables give a lower CGT rate of 18%, a higher rate of 24% and an annual exempt amount of £3,000. The 10%/20% rates are the old rates before October 2024, and £12,300 is a previous annual exempt amount. 14% is the business asset disposal relief rate, not a general rate.

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