ACCA Applied Skills · Taxation (UK) · The scope of the taxation of capital gains
Which statement about the capital gains tax rates in the Finance Act 2025 tax tables is correct?
The tables give a lower rate of 18% and a higher rate of 24% for capital gains tax. The 14% rate is only for gains qualifying for business asset disposal relief or investors' relief.
- AThe lower rate is 18% and the higher rate is 24%Correct
- BThe lower rate is 10% and the higher rate is 20%
- CThe lower rate is 18% and the higher rate is 28%
- DThe lower rate is 14% and the higher rate is 24%
Explanation
The tax tables show a lower rate of 18% and a higher rate of 24%. The 14% rate applies only to business asset disposal relief and investors' relief gains. The 10%/20% and 28% rates are earlier rates.
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