Which of the following is NOT exempt from capital gains tax on shares?

The correct answer, indicating that investment properties are not exempt from capital gains tax on shares, is based on the taxation framework applicable to different asset classes. In the UK tax system, when an individual sells an investment property, they may be liable to pay capital gains tax on any profit made from the sale. This is because investment properties are treated as assets that can appreciate in value over time, generating capital gains that are subject to taxation upon their disposal.

In contrast, options such as ISAs, corporate bonds, and premium bonds have specific tax-exempt characteristics. For instance, investments held within ISAs (Individual Savings Accounts) are shielded from capital gains tax, allowing individuals to accumulate wealth without incurring tax on gains. Similarly, while interest from corporate bonds is typically taxable, any gains from selling premium bonds do not incur capital gains tax since these are structured in a manner that primarily offers tax-free prizes rather than capital appreciation.

Understanding these distinctions is crucial for tax planning and investment decisions, enabling individuals to optimize their portfolios while remaining compliant with tax regulations.