George bought a shop in October 1998 for £290,000 and used it in his business until April 2010, when he gave it to hisfriend Harry. The market value of the shop at that time was £570,000.

Harry ran the shop as a sole trader for a while but decided to sell the shop in November 2019. He received £950,000 for the shop.

George and Harry claimed gift relief on the shop. Harry had no other disposals in 2019/2020.

Harry is a higher rate income tax payer.

Required

Calculate the Capital Gains Tax payable by Harry on his disposal of the shop: Ignoring any entrepreneurs’ relief .

Assuming Harry is entitled to entrepreneurs’ relief.

Answer rating: 100% (QA)

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