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ACCA Applied Skills · Taxation (UK) · The computation of capital gains tax

Which of the following statements about the capital gains tax annual exempt amount for 2025/26 is correct?

The annual exempt amount is £3,000 for each individual in 2025/26. Any unused amount is lost because it cannot be carried forward or transferred to a spouse, so couples should plan to use both their exemptions.

  1. AIt is £3,000 for an individual and unused amounts cannot be carried forward or transferred to a spouseCorrect
  2. BIt is £3,000 for an individual and any unused amount can be transferred to a spouse
  3. CIt is £3,000 for an individual and unused amounts can be carried forward for three years
  4. DIt is £6,000 for a married couple, shared between them in any proportion

Explanation

The annual exempt amount is £3,000 per individual. It is use-it-or-lose-it: it cannot be carried forward or transferred to a spouse. This is why couples may transfer assets between themselves so that both use their own exemptions.

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