SECTION 4 Q & A ANSWERS TO MOCK EXAMQUESTIONS 1 (A) MARK KETT –...

23,400

‒‒‒‒‒‒‒‒

Chargeable gains

199,500

Annual exempt amount

(10,600)

Taxable gains

188,900

Capital gains tax

(34,370 – 15,800) = 18,570 at 18%

3,343

Due date 31 January 2014

Workings

(1) The disposal is firstly matched against the shares acquired in the following

30 days.

(2) The shares in Concerto plc are valued at the lower of £5.12 (£5.10 + ¼ (£5.18

– £5.10)) and £5.11 ((£5.00 + £5.22)/2).

(3) The total period of ownership of the house is 81 months, of which a total of

75 months (period of occupation plus final 36 months) qualify for principal

private residence relief. The relief is therefore £97,500 (105,300 × 75/81).

(4) The cost relating to the three acres of land sold is £167,200 (220,000 ×