In 2020/21 Clive had taxable income (after deducting the personal allowance) of £33,000 and he made the following disposals in the year: i) In May 2020 he sold part of a set of silver cutlery that was originally acquired in March 2014 for £19,000 and costs of acquisition were £500. He received proceeds of £25,400. The market value of the remaining cutlery was £29,000. ii) In June 2020 he sold a painting for net proceeds of £5,100. He had bought the painting for £12,250 in July 2015. iii) In July 2010 he had acquired a 25-year copyright at a cost of £60,000. In July 2020 he sold the copyright for £71,000. iv) In August 2020 he sold 1,900 shares in Glug plc for £7.20 each. His shareholding in Glug plc was acquired as follows: • May 2013 - purchased 1,800 shares at a cost of £2.20 each. • April 2015 – there was a 1 for 10 rights issue by Glug plc at £1.90 per share and Clive acquired all the shares to which he was entitled. • October 2017 - purchased 3,500 shares at a cost of £3.15 each. v) In September 2020 he sold his car for £2,000. He had bought it in January 2013 for £25,000. vi) In October 2020 he sold an antique vase for £7,250. He had bought the vase for £3,850 in June 2015. At the start of the year Clive had capital losses of £20,000 brought forward. Required (you must answer both parts (a) and (b) to this question): a) Calculate the capital gain or loss on each disposal stated above, and then calculate Clive’s liability to capital gains tax (CGT) for 2020/21.
In 2020/21 Clive had taxable income (after deducting the personal allowance) of £33,000 and he made the following disposals in the year:
i) In May 2020 he sold part of a set of silver cutlery that was originally acquired in March 2014 for £19,000 and costs of acquisition were £500. He received proceeds of £25,400. The market value of the remaining cutlery was £29,000.
ii) In June 2020 he sold a painting for net proceeds of £5,100. He had bought the painting for £12,250 in July 2015.
iii) In July 2010 he had acquired a 25-year copyright at a cost of £60,000. In July 2020 he sold the copyright for £71,000.
iv) In August 2020 he sold 1,900 shares in Glug plc for £7.20 each. His shareholding in Glug plc was acquired as follows:
• May 2013 - purchased 1,800 shares at a cost of £2.20 each.
• April 2015 – there was a 1 for 10 rights issue by Glug plc at £1.90 per
share and Clive acquired all the shares to which he was entitled.
• October 2017 - purchased 3,500 shares at a cost of £3.15 each.
v) In September 2020 he sold his car for £2,000. He had bought it in January 2013 for £25,000.
vi) In October 2020 he sold an antique vase for £7,250. He had bought the vase for £3,850 in June 2015.
At the start of the year Clive had capital losses of £20,000 brought forward. Required (you must answer both parts (a) and (b) to this question):
a) Calculate the
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