CISI IoI Taxation of Investments

Question 1

What is the current annual exemption for Capital Gains Tax (CGT) for individual UK taxpayers in the 2025/26 tax year?

Accepted Answer

GBP 3,000

Answer

GBP 12,300

Answer

GBP 6,000

Answer

GBP 1,000

Question 2

How are dividends from UK shares taxed for a basic rate taxpayer (above the dividend allowance)?

Accepted Answer

At 8.75%

Answer

At 20%

Answer

At 40%

Answer

Dividends are tax-free for basic rate taxpayers

Question 3

What is the maximum amount that can be invested in an Individual Savings Account (ISA) in the 2025/26 tax year?

Accepted Answer

GBP 20,000

Answer

GBP 10,000

Answer

GBP 15,240

Answer

GBP 25,000

Question 4

What is the tax treatment of gains made within an Individual Savings Account (ISA)?

Accepted Answer

Gains are completely free from Capital Gains Tax and Income Tax

Answer

Gains are taxed at a reduced rate of 10%

Answer

Gains are tax-deferred until withdrawal

Answer

Only the first GBP 1,000 of gains is tax-free

Question 5

How is interest income from a UK corporate bond typically taxed?

Accepted Answer

It is taxed as savings income at the individual's marginal rate of Income Tax

Answer

It is exempt from all UK taxes

Answer

It is taxed at Capital Gains Tax rates

Answer

It is taxed at a flat rate of 15%

Question 6

What is the Capital Gains Tax rate for a higher rate taxpayer disposing of listed shares in the 2025/26 tax year?

Accepted Answer

24%

Answer

10%

Answer

20%

Answer

40%