Test your understanding
(1). For the tax year 2024-25, Som has chargeable gains of £14,600. She has unused capital losses of £26,100 brought forward from the tax year 2023-24.
What amount of unused capital losses will Som carry forward to the tax year 2025-26?
A £26,100
B £0
C £14,500
D £11,500
(2). For the tax year 2024-25, Alistair’s taxable income is £34,040. During the year he sold an antique vase and this resulted in a chargeable gain of £24,600.
What is Alistair’s CGT liability for the tax year 2024-25?
A £3,954
B £4,554
C £4,320
D £2,160
(3). Dash Ltd sold a factory on 7 February 2025 for £260,000. The factory was purchased on 4 July 1997 for £114,000.
The indexation factor from July 1997 to December 2017 is 0.766.
What is Dash Ltd’s chargeable gain in respect of the disposal of the factory?
A £146,000
B £34,164
C £0
D £58,676
(4). Jade sold 25,000 £1 ordinary shares in Silver plc on 13 March 2025. Jade had purchased 60,000 shares in Silver plc on 18 February 2016 for £72,000. On 24 May 2019, Silver plc made a 1 for 4 bonus issue.
What cost figure will be used in calculating the chargeable gain on the disposal of Jade’s 25,000 ordinary shares in Silver plc?
A £6,000
B £24,000
C £25,000
D £30,000
(5). During March 2025, an investor made four disposals of shares in unquoted trading companies. Which disposal could qualify for investors’ relief?
A Shares purchased from a shareholder during July 2020
B Shares acquired by subscription during June 2021
C Shares purchased from a shareholder during March 2024
D Shares acquired by subscription during August 2022
The following scenario relates to questions 6-10.
Jay disposed of various assets during the tax year 2024-25, and these disposals resulted in chargeable gains of £46,400 qualifying for business asset disposal relief and another £114,000 of chargeable gains not qualifying for business asset disposal relief. None of the gains are residential property gains. Jay’s disposals included the following:
(1). On 19 April 2024, Jay sold five hectares of land for £72,000. He had originally purchased eight hectares of land on 7 June 2015 for £68,000. The market value of the unsold three hectares of land as at 19 April 2024 is £40,500.
(2). On 8 June 2024, Jay sold an antique table for £12,800. The table had been purchased on 2 May 2013 for £1,300.
(3). On 19 October 2024, Jay made a gift of his entire shareholding of £1 ordinary shares in AMZ plc to his son. On the date of the gift, the shares were quoted at £10.20 – £10.64.
(4). On 10 March 2025, Jay sold a factory and this disposal resulted in a chargeable gain.
Jay does not have any taxable income for the tax year 2024-25.
Required:
(6). What cost figure will have been used in calculating the chargeable gain on the disposal of Jay’s five hectares of land?
A £42,500
B £68,000
C £46,080
D £43,520
(7). What is Jay’s chargeable gain in respect of the disposal of the antique table?
A £11,333
B £4,080
C £11,500
D £6,800
(8). What market value figure will have been used in calculating the chargeable gain on Jay’s gift of AMZ plc shares?
A £10.20 per share
B £10.31 per share
C £10.42 per share
D £10.64 per share
(9). During what period must reinvestment take place if Jay wishes to claim rollover relief in respect of the chargeable gain arising on the disposal of the factory?
A 10 March 2024 to 10 March 2026
B 10 March 2025 to 10 March 2028
C 10 March 2024 to 10 March 2028
D 10 March 2025 to 10 March 2026
(10). What is Jay’s CGT liability for the tax year 2024-25?
A £23,070
B £26,840
C £27,140
D £27,440
