On 27 May 2022 he sold an antique clock for £7,200.

The clock had been purchased in

June
2006 for £3,700. (1 mark)
Non Wasting Chattel aka ANTIQUE

Disposal: 7,200
Cost: 3,700

5/3 x (Disposal - 6,000)

Standard diposal;

Diposal 7,200
Cost (3,700)
taxable profit 3,500

Hwoever for an antique

5/3 x (7,200 - 6,000)

5/3 x 1200
2,000 - Charegable gain

The chargeable gain for the antique clock is 2,000

On 19 October 2022 he transferred his entire shareholding of 20,000 £1 ordinary

shares in
Rapier Ltd, an unquoted trading company, to his wife Polly. On that date the shares
were valued at
£264,000. Sinbad’s shareholding had been purchased on 29 June 2007 for £148,000.

A. Transferred at cost between couples, hence no gain

On 17 February 2023 he made a gift of 15,000 £1 ordinary shares in Xrot plc to his
daughter. On
that date the shares were valued at £10 each. Sinbad had originally purchased
30,000 shares in
Xrot plc on 25 June 2008 for £18,000. He had not made any disposals or further
acquisitions
before the gift to his daughter. He is not an employee of Xrot plc which is a
listed company.

Disposal 15,000x10 150,000

(-) Cost 18000 x 15000/30000 (9000)
Gain 141,000

In July 2022 he sold land used for the purposes of a trade of growing potted plants
for
£1,148,000. The chargeable gain was £128,500. In February 2023 Sinbad reinvested
£1,135,000 in another piece of land also for use in the trade. No further
reinvestment is
expected.

Disposal 1,148,000
Gain 128,500

Cost of New land 1,135,000

gain charged now = 1,148,000 - 1,135,000 = 13,000

Gain rolled over = (128,500 - 13,000) 115,000
5. In February 2023 he sold a flat realising a gain of £100,000. The total period
of ownership of the
flat was ten years. Sinbad occupied the flat as his main residence for the first 36
months of
ownership and then let it out. It was let out continuously until the date of sale.
During that time
Sinbad had another property which qualified as his main residence.

gain 100,000
n = 10 years - 120 months
main residence 36 months

Gain 100,000
(-) PPR
(36+9)/120 x 100,000 (37,500)
Charegable gain 62,500