TX - Ch. 12, 13, 14, 15 & 21

Which of the following assets are always fully exempt from Capital Gains Tax (CGT)?

(1) Private residence

(2) Qualifying corporate bonds

(3) Government securities

(4) Chattels

• 1. 1 and 2

• 1. 2 and 3

• 1. 3 and 4

• 1. 4 and 1

Noah sold a warehouse on 30 June 2024 for £200,000, and incurred agent’s fees on the sale of 5%. He had purchased the warehouse on 1 June 2004 for £120,000, and paid £20,000 for an extension to the warehouse in June 2009.

What is Noah’s taxable gain arising on the disposal of the warehouse?

• 1. £67,000

• 1. £57,000

• 1. £50,000

• 1. £47,000

Matteo and Anna are married. During the tax year 2024-25 Matteo transferred a chargeable asset to Anna which had a market value of £10,000, and had originally cost him £5,000 when he acquired the asset in April 2019.

Matteo also sold a residential property on 31 August 2024, realising a chargeable gain of £100,000. Matteo’s only other income was his tax adjusted trading profit of £30,000.

How much will Matteo’s additional capital gains tax payable on 31 January 2026 be?

• 1. £0

• 1. £22,064

• 1. £1,000

• 1. £23,280

Joseph had a salary of £28,000 for the tax year 2024-25, and a chargeable gain on the sale of a commercial property of £150,000.

What is Joseph’s capital gains tax liability for the tax year 2024-25?

• 1. £27,773

• 1. £29,400

• 1. £27,173

• 1. £33,944

Pieter purchased a holiday home in July 2015. The holiday home cost £95,000 and he paid legal fees of £2,600 relating to the purchase.

During 2020 he spent £6,700 on an extension to the kitchen and in 2023 he spent £3,300 on roof repairs following a storm. Pieter anticipates selling the house in the next few months.

What is the total amount of allowable expenditure on the disposal of the holiday home?

• 1. £97,600

• 1. £100,900

• 1. £104,300

• 1. £107,600

For the tax year 2024-25 Arthur’s taxable income is £31,985. During the year he sold an antique chair which gave rise to a chargeable gain of £25,300.

What is Arthur’s capital gains tax liability for the tax year 2024-25?

• 1. £2,230

• 1. £3,888

• 1. £4,460

• 1. £4,488

In March 2011, Morgan purchased the freehold of an office building for £644,000. Morgan sold the building in March 2025 for £1,130,100.

He made no other disposals of chargeable assets during the tax year 2024-25 and his taxable income in the tax year 2024-25 was £52,000.

What is Morgan’s capital gains tax liability for the tax year 2024-25?

• 1. £48,310

• 1. £96,620

• 1. £97,220

• 1. £48,610

For the tax year 2024-25 Samantha has chargeable gains of £24,800 and a capital loss of £10,000. She has unused capital losses of £25,700 brought forward from the tax year 2023-24.

What amount of unused capital losses can Samantha carry forward to the tax year 2025-26?

• 1. £13,900

• 1. £3,900

• 1. £10,900

• 1. £25,700

On 31 March 2025, Jessica sold a copyright for £28,800. The copyright had been purchased on 1 April 2019 for £21,000 when it had an unexpired life of 15 years.

What is Jessica’s chargeable gain in respect of the disposal of the copyright?

• 1. £0

• 1. £20,400

• 1. £16,200

• 1. £7,800

Fergus sold an antique vase for £10,000 on 1 February 2025. He had originally bought the vase for £2,000 on 1 June 2004.

What will be Fergus’s chargeable gain on the disposal of the antique vase?

• 1. £8,000

• 1. £6,667

• 1. £3,333

• 1. £0