(1). For the tax year 2019–20, Som has chargeable gains of £23,600. She has unused capital losses of £26,100 brought forward from the tax year 2018–19.
What amount of unused capital losses will Som carry forward to the tax year 2020–21?
A £26,100
B £0
C £14,500
D £2,800
(2). For the tax year 2019–20, Alistair’s taxable income is £33,840. During the year he sold an antique vase and this resulted in a chargeable gain of £33,600.
What is Alistair’s CGT liability for the tax year 2019–20?
A £3,954
B £6,354
C £4,320
D £2,160
(3). Dash Ltd sold a factory on 7 February 2020 for £260,000. The factory was purchased on 4 July 1997 for £114,000.
Indexation factors are:
What is Dash Ltd’s chargeable gain in respect of the disposal of the factory?
A £146,000
B £34,164
C £50,924
D £58,676
(4). Jade sold 25,000 £1 ordinary shares in Silver plc on 13 March 2020. Jade had purchased 60,000 shares in Silver plc on 18 February 2011 for £72,000. On 24 May 2014, Silver plc made a 1 for 4 bonus issue.
What cost figure will be used in calculating the chargeable gain on the disposal of Jade’s 25,000 ordinary shares in Silver plc?
A £6,000
B £24,000
C £25,000
D £30,000
The following scenario relates to questions 5–9.
Jay disposed of various assets during the tax year 2019–20, and these disposals resulted in chargeable gains of £46,400 qualifying for entrepreneurs’ relief and another £123,000 of chargeable gains not qualifying for entrepreneurs’ relief. None of the gains are residential property gains. Jay’s disposals included the following:
(1). On 19 April 2019, Jay sold five hectares of land for £72,000. He had originally purchased eight hectares of land on 7 June 2010 for £68,000. The market value of the unsold three hectares of land as at 19 April 2019 is £40,500.
(2). On 8 June 2019, Jay sold an antique table for £12,800. The table had been purchased on 2 May 2008 for £1,300.
(3). On 19 October 2019, Jay made a gift of his entire shareholding of £1 ordinary shares in AMZ plc to his son. On the date of the gift, the shares were quoted at £10.20 – £10.64.
(4). On 10 March 2020, Jay sold a factory used in his trade and this disposal resulted in a chargeable gain.
Jay does not have any taxable income for the tax year 2019–20.
Required:
(5). What cost figure will have been used in calculating the chargeable gain on the disposal of Jay’s five hectares of land?
A £42,500
B £68,000
C £46,080
D £43,520
(6). What is Jay’s chargeable gain in respect of the disposal of the antique table?
A £11,333
B £4,080
C £11,500
D £6,800
(7). What market value figure will have been used in calculating the chargeable gain on Jay’s gift of AMZ plc shares?
A £10.20 per share
B £10.31 per share
C £10.42 per share
D £10.64 per share
(8). During what period must reinvestment take place if Jay wishes to claim rollover relief in respect of the chargeable gain arising on the disposal of the factory?
A 10 March 2019 to 10 March 2021
B 10 March 2020 to 10 March 2023
C 10 March 2019 to 10 March 2023
D 10 March 2020 to 10 March 2021
(9). What is Jay’s CGT liability for the tax year 2019–20?
A £23,090
B £26,840
C £28,040
D £29,240