ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax: the scope of the taxation of capital gains
Which statement about the annual exempt amount for an individual is correct?
The annual exempt amount of £3,000 is available per individual each tax year and is lost if unused. It cannot be carried forward or transferred to a spouse, and it is not reduced for higher rate taxpayers.
- AUnused annual exempt amount can be carried forward for up to three years
- BIt can be transferred to a spouse who has made no gains
- CIt is available in full to an individual and is lost if not used in the tax yearCorrect
- DIt is halved if the individual is a higher rate taxpayer
Explanation
The annual exempt amount (£3,000 in the tax tables) is a yearly allowance that cannot be carried forward or transferred between spouses. It does not vary with the individual's income level.
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