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ACCA Applied Skills · Taxation (UK) · Gains and losses on the disposal of movable and immovable property

Which one of the following disposals by a UK resident individual in 2026/27 is an exempt asset for capital gains tax purposes, so that no chargeable gain or allowable loss arises?

The sale of a private motor car is the exempt asset. Cars are specifically outside capital gains tax, so neither gains nor losses are recognised. Quoted shares, investment land and a let second residential property are all chargeable assets and can produce chargeable gains or allowable losses.

  1. ASale of a private motor carCorrect
  2. BSale of a second residential property let to tenants
  3. CSale of a quoted company's ordinary shares
  4. DSale of freehold land held as an investment

Explanation

Private motor cars are exempt assets, so gains and losses on them are ignored. Shares, land and a let residential property are all chargeable assets, although gains on them may be covered by the annual exempt amount of £3,000.

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