Skip to content

ACCA Applied Skills · Taxation (UK) · Chargeable gains for companies

Which statement about how a UK company's chargeable gains are taxed is correct for the year ended 31 March 2027?

Gains are included in taxable total profits and charged to corporation tax. The 18% and 24% rates, the £3,000 annual exempt amount and the 14% relief rate in the capital gains tax table apply to individuals, not companies.

  1. AGains are taxed at 18% or 24% depending on taxable income
  2. BGains are reduced by the £3,000 annual exempt amount
  3. CGains are included in taxable total profits and charged to corporation taxCorrect
  4. DGains are taxed at the 14% rate

Explanation

A company's chargeable gains are added to its other profits within taxable total profits and taxed at the corporation tax rates. The rates of 18% and 24% and the £3,000 annual exempt amount in the tax tables are capital gains tax figures for individuals. The 14% rate is for business asset disposal relief and investors' relief, also for individuals.

Did you get it right without looking?

One question tells you little. A timed set on Chargeable gains for companies shows your real accuracy, how long you take and where you lose marks.

Practise Chargeable gains for companiesFree diagnostic mock

More Chargeable gains for companies questions