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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: the scope of the taxation of capital gains

Which of the following correctly states the capital gains tax rates and annual exempt amount for an individual under the ATX-UK tax tables (Finance Act 2025)?

The ATX-UK tax tables set capital gains tax at 18% for the lower rate and 24% for the higher rate, with an annual exempt amount of £3,000. The other options use out-of-date rates or exempt amounts.

  1. ARates of 10% and 20%, with an annual exempt amount of £3,000
  2. BRates of 18% and 24%, with an annual exempt amount of £3,000Correct
  3. CRates of 18% and 24%, with an annual exempt amount of £12,300
  4. DRates of 20% and 28%, with an annual exempt amount of £6,000

Explanation

The ATX-UK tax tables give a lower rate of 18%, a higher rate of 24% and an annual exempt amount of £3,000. The 10%/20% rates are the old rates for non-residential assets, and £12,300 and £6,000 were earlier annual exempt amounts.

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