(d) Which of the following disposals are exempt from, and which are chargeable to, capital gains tax? (1) Gift of a necklace which was bought for £4,000. Its market value at the date of gift was £7,000. (2) Sale of shares in a quoted trading company for £2,000 which were bought for £1,000. (3) Sale of a motor car, for £5,000, which was used for business purposes. It was acquired for £6,000. (4) Sale of a boat for 20,000, which was acquired for £15,000. (5) Sale of a painting for £5,000, which was acquired for£ 1,000
(d) Which of the following disposals are exempt from, and which are chargeable to, capital gains tax? (1) Gift of a necklace which was bought for £4,000. Its market value at the date of gift was £7,000. (2) Sale of shares in a quoted trading company for £2,000 which were bought for £1,000. (3) Sale of a motor car, for £5,000, which was used for business purposes. It was acquired for £6,000. (4) Sale of a boat for 20,000, which was acquired for £15,000. (5) Sale of a painting for £5,000, which was acquired for£ 1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(d) Which of the following disposals are exempt from, and which are chargeable to, capital
gains tax?
(1) Gift of a necklace which was bought for £4,000. Its market value at the date of gift was
£7,000.
(2) Sale of shares in a quoted trading company for £2,000 which were bought for £1,000.
(3) Sale of a motor car, for £5,000, which was used for business purposes. It was acquired
for £6,000.
(4) Sale of a boat for 20,000, which was acquired for £15,000.
(5) Sale of a painting for £5,000, which was acquired for£ 1,000
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