SECTION 4 Q & A ANSWERS TO MOCK EXAMQUESTIONS 1 (A) MARK KETT –...
285,000/375,000 (285,000 + 90,000)).
(5) The transfer of the holiday cottage between Paul and his wife is effectively
ignored for CGT purposes, so the wife’s original cost is used in calculating
Paul’s capital gain.
4
(a) (1) The change of accounting date must be notified to HM Revenue & Customs
by the 31 January following the tax year in which the change is made.
(2) The first accounts to the new accounting date must not exceed 18 months in
length.
(3) There must not have been a change of accounting date within the
preceding five tax years, although this does not apply if the present change
is made for genuine commercial reasons.
(b)
£