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 ×