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ACCA Applied Skills · Taxation (UK) · The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the disposal of capital assets

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

The annual exempt amount for 2025/26 is £3,000 per individual and any unused part is lost, as it cannot be carried forward or back. It is available regardless of the taxpayer's rate band.

  1. AUnused annual exempt amount can be carried forward for up to three years
  2. BIt is £3,000 for an individual and unused amounts are lostCorrect
  3. CIt can be set against capital losses brought forward before they are used
  4. DIt is available only to higher rate taxpayers

Explanation

The tax table gives an annual exempt amount of £3,000. An unused amount cannot be carried forward or back, so it is wasted. It is available to all individuals regardless of rate, and brought forward losses are only used to reduce gains down to the exempt amount, not beyond it.

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