ACCA Applied Skills · Taxation (UK) · The basic principles of computing gains and losses
Which one of the following assets is an exempt asset for capital gains tax purposes?
A private motor car is an exempt asset, so no chargeable gain or allowable loss arises on its disposal. Commercial buildings, quoted shares and investment paintings are all chargeable assets for capital gains tax.
- AA freehold commercial building held as an investment
- BA holding of quoted ordinary shares
- CA painting held as an investment
- DA private motor carCorrect
Explanation
Private motor cars are exempt assets, so any gain or loss on disposal is ignored. Land and buildings, shares and paintings are all chargeable assets, although a painting may be a chattel with its own rules.
Did you get it right without looking?
One question tells you little. A timed set on The basic principles of computing gains and losses shows your real accuracy, how long you take and where you lose marks.
More The basic principles of computing gains and losses questions
- Tomas made chargeable gains of £16,000 and allowable losses of £5,000 in 2025/26. He has unused capital losses of £4,000 brought forward fro…
- Priya, a UK resident individual, sold a painting in 2025/26 and realised a capital loss of £9,000. She made no other disposals in the year. …
- Marcus died on 1 December 2025. In 2025/26 up to death he made gains of £8,000 and had no losses. In the year of death he also had allowable…
- Which of the following statements about the use of the annual exempt amount of £3,000 in 2025/26 is correct?
- Elena, a higher rate taxpayer, sold shares in 2025/26 for a gain of £23,000 and sold land for a loss of £8,000. She has no other disposals a…
- Which one of the following statements about the rates of capital gains tax for an individual in 2025/26 is correct?