Wanda disposed of a number of assets during 2021/22 as follows: 1) Antique vase Wanda bought this
Question:
Wanda disposed of a number of assets during 2021/22 as follows:
1) Antique vase
Wanda bought this vase for £10,000 in 2006 and sold it for £5,250 in June 2021.
2) Antique table
This had been purchased in August 2008 for £4,500 and was sold in May 2021 for £7,500
3) Land
In April 2006, Wanda acquired an 8-hectare field for a cost of £5,000 per hectare. She sold 3 hectares in July 2021 for £90,000. At the time of the sale, the remaining 5 hectares were valued at £20,000 in total.
4) 56 Church Road
Wanda purchased this house in April 2012 for £120,000. She lived in the property until March 2018 when she moved into her partner's property. The house remained empty until it was sold in March 2022 for £200,000.
Required:
a) Calculate the capital gain arising on each of the above disposals.
b) Briefly explain how an individual's taxable income impacts the calculation of their capital gains tax payable.
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello