Chargeable Gains for Individuals
Disposals, proceeds and cost, part disposals, shares, chattels, principal residences, losses, exemptions and reliefs.
How to study ACCA Applied Skills
Build on Applied Knowledge, use the correct UK law and tax versions, practise workplace-style digital responses and keep each independent 50% pass decision visible.
Core concepts
Concept 1
A chargeable gain starts with disposal consideration less allowable cost and incidental expenditure, modified by specific asset rules.
Exam cue: Identify the disposal date, asset and consideration before calculating the gain.
Concept 2
Losses, annual exemption, applicable rates and reliefs determine the taxable and payable amount.
Exam cue: Build the gain asset by asset, then apply losses, exemptions, reliefs and rates in order.
Concept 3
Timing and deemed consideration rules can create a disposal without ordinary cash sale proceeds.
Exam cue: Check special rules for connected persons, shares, part disposals, chattels and residences.
Risk pitfalls and guardrails
Using cash received as the disposal date in every case.
Guardrail: Do not reuse a legal rule, tax amount, reporting format, audit phrase or finance formula without checking scope, date, units and evidence.
Deducting expenditure that is not allowable capital cost.
Guardrail: Do not reuse a legal rule, tax amount, reporting format, audit phrase or finance formula without checking scope, date, units and evidence.
Applying a relief without checking qualifying asset, holding and replacement conditions.
Guardrail: Do not reuse a legal rule, tax amount, reporting format, audit phrase or finance formula without checking scope, date, units and evidence.
Memory anchors
Disposal
A disposal includes sale, gift and other events treated by legislation as transferring or extinguishing an asset interest.
Allowable Cost
Allowable cost includes qualifying acquisition, enhancement and incidental disposal expenditure.
Part Disposal
A part disposal apportions common cost using the statutory value fraction.
Capital Loss
An allowable capital loss generally offsets chargeable gains subject to ordering and restriction rules.
Principal Residence Relief
Principal residence relief may exempt qualifying gains attributable to an individual's only or main residence.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
An asset is sold for £74,000 and allowable cost plus incidental acquisition and disposal costs total £49,000. What gain arises before reliefs?
Why may market value replace actual proceeds on a transfer to a connected person?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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