(1). C The set off of brought forward capital losses is after deducting the annual exempt amount, so just £11,600 (17,600 – 6,000) of Som’s brought forward losses can be used in 2023-24. She therefore has unused capital losses of £14,500 (26,100 – 11,600) carried forward to 2024-25.
(2). A Alistair has £3,660 (37,700 – 34,040) of his basic rate tax band unused. The CGT liability in respect of the taxable gain of £21,600 (27,600 – 6,000) is therefore £3,954 ((3,660 at 10%) + (17,940 at 20%)).
(3). D The indexation allowance is £87,324 (114,000 x 0.766), so Dash Ltd’s chargeable gain is £58,676 (260,000 – 114,000 – 87,324).
(4). B Jade was issued with 15,000 (60,000 x 1/4) new ordinary shares as a result of the bonus issue. The cost of the shares sold is therefore £24,000 (72,000 x 25,000/(60,000 + 15,000)).
(5). B To qualify for investors’ relief, shares must be (1) newly issued shares acquired by subscription and (2) owned for at least three years after 6 April 2016 (when investors’ relief was introduced).
(6). D The cost relating to the five hectares of land sold is £43,520 (68,000 x 72,000/(72,000 + 40,500)).
(7). A The chargeable gain is restricted to £11,333 ((12,800 – 6,000) x 5/3) because this is less than the normal gain of £11,500 (12,800 – 1,300).
(8). C Quoted shares are valued at the mid-price based on the day’s quoted price, so the market value of AMZ plc’s shares is £10.42 ((£10.20 + £10.64)/2).
(9). C The reinvestment must take place between one year before and three years after the date of disposal.
(10). B Although Jay’s basic rate tax band is unused, this is set against the gains qualifying for business asset disposal relief. His CGT liability for 2023-24 is therefore £26,840 (((117,000 – 6,000) at 20%) + (46,400 at 10%)).