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ACCA Strategic Professional · Advanced Taxation (UK) · Capital gains tax and trusts

Which statement about the rate of capital gains tax charged on gains eligible for business asset disposal relief, and the lifetime limit, is consistent with the ATX-UK tax tables for the Finance Act 2025 exam period?

Business asset disposal relief taxes qualifying gains at 14% up to a lifetime limit of £1,000,000, as shown in the ATX-UK tax tables. Investors' relief has the same rate and limit. The 10% rate and £10 million limit are historic figures and no longer apply.

  1. AEligible gains are taxed at 10% up to a lifetime limit of £1,000,000
  2. BEligible gains are taxed at 14% up to a lifetime limit of £1,000,000Correct
  3. CEligible gains are taxed at 14% up to a lifetime limit of £10,000,000
  4. DEligible gains are taxed at 18% up to a lifetime limit of £1,000,000

Explanation

The tax tables give a business asset disposal relief rate of 14% and a lifetime limit of £1,000,000. The same limit and rate are shown for investors' relief. 10% was the earlier rate and £10 million was a historic limit.

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