Tina sold a painting on 1 July 2019 for £500,000. She purchased the painting in February 1997 for £350,000. She also disposed of a commercial investment property for £310,000 on 1 December 2019 and incurred agency fees of £15,000 on the disposal. She had purchased the property in August 1998 for £200,000. In addition, she sold an antique vase for £10,000 in January 2020 which had cost her £15,000 in September 2017. Tina had capital losses brought forward from previous tax years of £15,000. Tina’s taxable income for 2019/20 is £50,000. REQUIREMENT FOR PART A- Calculate Tina’s Capital Gains Tax for 2019/200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

question 2 Part a -

 Tina sold a painting on 1 July 2019 for £500,000. She purchased the painting in February 1997 for £350,000.

She also disposed of a commercial investment property for £310,000 on 1 December 2019 and incurred agency fees of £15,000 on the disposal. She had purchased the property in August 1998 for £200,000.

In addition, she sold an antique vase for £10,000 in January 2020 which had cost her £15,000 in September 2017.

Tina had capital losses brought forward from previous tax years of £15,000. Tina’s taxable income for 2019/20 is £50,000.

REQUIREMENT FOR PART A-

Calculate Tina’s Capital Gains Tax for 2019/200

 

PART B QUESTION 

Jane owns shares in ABC Ltd. She acquired 1,500 shares in the company on 31 May 2016 for £20,000, and 500 shares on 30 June 2017 for £10,000. On 7 July 2020 Jane bought a further 200 shares in ABC Ltd for £4,000.Jane sold 1,000 shares in ABC Ltd on 28 June 2020 for £25,000. She is not an employee of ABC Ltd.

REQUIREMENT FOR PART B:

Calculate Jane’s capital gain on the disposal of the shares on 28 June 2020.

 

PART C QUESTION  

Jerome bought a factory in June 2004 for £680,000. In August 2020 wishing to move to a more convenient location, he sold the factory for £800,000. He moved into a rented factory until January 2021 when he purchased and moved to a new factory.

 

REQUIREMENT FOR PART C

Assuming that all beneficial claims are made calculate the base cost of the new factory if it was purchased for

(a) £750,000

(b) £600,000

 

i need the answer for part A please with an explanation 

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education