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ACCA Applied Skills · Taxation (UK) · The basic principles of computing gains and losses

Which one of the following statements about the rates of capital gains tax for an individual in 2025/26 is correct?

For 2025/26, capital gains tax is charged at 18% and 24%. The 18% rate applies to gains falling within any unused basic rate band after taxable income, and 24% applies to the rest of the gains.

  1. AThe rates are 18% and 24%, depending on the individual's taxable incomeCorrect
  2. BThe rates are 10% and 20%, depending on the individual's taxable income
  3. CThe rate is 24% for all individuals regardless of income
  4. DThe rates are 20% and 40%, matching the income tax rates

Explanation

The tax tables give a lower rate of 18% and a higher rate of 24%. Which applies depends on how much of the basic rate band is unused after taxable income. The 10%/20% rates are the old rates and the other options misstate the tables.

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