# Chargeable gains

(1). For the tax year 2020–21, Som has chargeable gains of £23,900. She has unused capital losses of £26,100 brought forward from the tax year 2019–20.

What amount of unused capital losses will Som carry forward to the tax year 2021–22?

A  £26,100
B  £0
C  £14,500
D  £2,200

(2). For the tax year 2020–21, Alistair’s taxable income is £33,840. During the year he sold an antique vase and this resulted in a chargeable gain of £33,900.

What is Alistair’s CGT liability for the tax year 2020–21?

A  £3,954
B  £6,414
C  £4,320
D  £2,160

(3). Dash Ltd sold a factory on 7 February 2021 for £260,000. The factory was purchased on 4 July 1997 for £114,000.

Indexation factors are:

• July 1997 to December 2017 – 0.766
• July 1997 to February 2021 – 0.873

What is Dash Ltd’s chargeable gain in respect of the disposal of the factory?

A  £146,000
B  £34,164
C  £46,478
D  £58,676

(4). Jade sold 25,000 £1 ordinary shares in Silver plc on 13 March 2021. Jade had purchased 60,000 shares in Silver plc on 18 February 2012 for £72,000. On 24 May 2015, 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 2020–21, and these disposals resulted in chargeable gains of £46,400 qualifying for business asset disposal relief and another £123,300 of chargeable gains not qualifying for business asset disposal relief. None of the gains are residential property gains. Jay’s disposals included the following:

(1) On 19 April 2020, Jay sold five hectares of land for £72,000. He had originally purchased eight hectares of land on 7 June 2011 for £68,000. The market value of the unsold three hectares of land as at 19 April 2020 is £40,500.

(2) On 8 June 2020, Jay sold an antique table for £12,800. The table had been purchased on 2 May 2009 for £1,300.

(3) On 19 October 2020, 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 2021, Jay sold a factory and this disposal resulted in a chargeable gain.

Jay does not have any taxable income for the tax year 2020–21.

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 2020 to 10 March 2022
B  10 March 2021 to 10 March 2024
C  10 March 2020 to 10 March 2024
D  10 March 2021 to 10 March 2022

(9). What is Jay’s CGT liability for the tax year 2020–21?

A  £23,090
B  £26,840
C  £28,070
D  £29,300