ATT Personal Tax Paper 1 – Capital Gains Tax
2026 | Association of Taxation Technicians
(ATT) Personal Taxation Practice Exam
2026/2027 | Practice Questions & Study Guide
| Complete Exam-Style Questions with Correct
Detailed Answers & Rationales (Reliable
Answers) | Latest Updated Version | Instant
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Question 1
An individual disposes of an investment asset for £72,000. The
original purchase price was £45,000 and allowable incidental
acquisition and disposal costs total £3,000. There are no other
adjustments. What is the individual's chargeable gain?
A. £24,000
B. £27,000
C. £24,000
D. £30,000
Answer: C. £24,000
,The chargeable gain is calculated by deducting the allowable
acquisition and disposal costs from the disposal proceeds and
cost. Therefore: £72,000 − £45,000 − £3,000 = £24,000. The
gain is not simply the difference between the sale proceeds and
purchase price because qualifying incidental costs are
deductible in calculating the gain.
Question 2
Which of the following is generally a chargeable asset for
Capital Gains Tax purposes?
A. A private motor car used for personal purposes
B. An investment property
C. A qualifying wasting chattel sold for its original cost
D. Cash held in a sterling bank account
Answer: B. An investment property
An investment property is normally a chargeable asset and a
disposal can give rise to a chargeable gain or allowable loss.
Private motor cars are generally exempt, while cash itself is not
normally a chargeable asset for CGT. The treatment of wasting
chattels depends on the specific statutory conditions.
Question 3
,An individual sells shares for £40,000. The shares originally cost
£25,000 and qualifying incidental selling costs are £1,000. What
is the gain before any losses or annual exempt amount?
A. £14,000
B. £15,000
C. £14,000
D. £16,000
Answer: C. £14,000
The gain is £40,000 disposal proceeds less the £25,000
allowable acquisition cost and £1,000 allowable disposal cost.
This gives £14,000. The annual exempt amount and any capital
losses are considered after the individual gains have been
calculated.
Question 4
Which statement best describes the annual exempt amount for
an individual under the ATT 2026 tax tables?
A. It is £1,500
B. It is £6,000
C. It is £3,000
D. It is £12,300
Answer: C. It is £3,000
, For the 2025/26 tax year used by the 2026 ATT tax tables, the
annual exempt amount for individuals is £3,000. It is deducted
from net taxable gains after applying the relevant capital losses
and reliefs. It is not an allowance that can be carried forward if
unused.
Question 5
An individual has a chargeable gain of £10,000 and allowable
capital losses of £2,000 for the same tax year. What amount
remains before applying the annual exempt amount?
A. £10,000
B. £12,000
C. £8,000
D. £2,000
Answer: C. £8,000
The allowable capital loss is deducted from chargeable gains to
determine the net gains for the year. Therefore, £10,000 −
£2,000 = £8,000. The annual exempt amount is then considered
when calculating the taxable gain.
Question 6
2026 | Association of Taxation Technicians
(ATT) Personal Taxation Practice Exam
2026/2027 | Practice Questions & Study Guide
| Complete Exam-Style Questions with Correct
Detailed Answers & Rationales (Reliable
Answers) | Latest Updated Version | Instant
Download PDf
Question 1
An individual disposes of an investment asset for £72,000. The
original purchase price was £45,000 and allowable incidental
acquisition and disposal costs total £3,000. There are no other
adjustments. What is the individual's chargeable gain?
A. £24,000
B. £27,000
C. £24,000
D. £30,000
Answer: C. £24,000
,The chargeable gain is calculated by deducting the allowable
acquisition and disposal costs from the disposal proceeds and
cost. Therefore: £72,000 − £45,000 − £3,000 = £24,000. The
gain is not simply the difference between the sale proceeds and
purchase price because qualifying incidental costs are
deductible in calculating the gain.
Question 2
Which of the following is generally a chargeable asset for
Capital Gains Tax purposes?
A. A private motor car used for personal purposes
B. An investment property
C. A qualifying wasting chattel sold for its original cost
D. Cash held in a sterling bank account
Answer: B. An investment property
An investment property is normally a chargeable asset and a
disposal can give rise to a chargeable gain or allowable loss.
Private motor cars are generally exempt, while cash itself is not
normally a chargeable asset for CGT. The treatment of wasting
chattels depends on the specific statutory conditions.
Question 3
,An individual sells shares for £40,000. The shares originally cost
£25,000 and qualifying incidental selling costs are £1,000. What
is the gain before any losses or annual exempt amount?
A. £14,000
B. £15,000
C. £14,000
D. £16,000
Answer: C. £14,000
The gain is £40,000 disposal proceeds less the £25,000
allowable acquisition cost and £1,000 allowable disposal cost.
This gives £14,000. The annual exempt amount and any capital
losses are considered after the individual gains have been
calculated.
Question 4
Which statement best describes the annual exempt amount for
an individual under the ATT 2026 tax tables?
A. It is £1,500
B. It is £6,000
C. It is £3,000
D. It is £12,300
Answer: C. It is £3,000
, For the 2025/26 tax year used by the 2026 ATT tax tables, the
annual exempt amount for individuals is £3,000. It is deducted
from net taxable gains after applying the relevant capital losses
and reliefs. It is not an allowance that can be carried forward if
unused.
Question 5
An individual has a chargeable gain of £10,000 and allowable
capital losses of £2,000 for the same tax year. What amount
remains before applying the annual exempt amount?
A. £10,000
B. £12,000
C. £8,000
D. £2,000
Answer: C. £8,000
The allowable capital loss is deducted from chargeable gains to
determine the net gains for the year. Therefore, £10,000 −
£2,000 = £8,000. The annual exempt amount is then considered
when calculating the taxable gain.
Question 6
