On 21st June 2020 he sold 10,000 shares in Kent Ltd to his son for £20,000. On that date they were valued at £40,000 and he had acquired them in 2011 for £80,000.

Required:

 

a.            Calculate the gains arising on each of the above events, assuming that Michael makes all available elections to minimise his liability in 2020/21.

 

b.            Calculate Michael’s capital gains tax liability for 2020/21.

Answer rating: 100% (QA)

a i Loss on the selling of Kent shares 60000 ii GOS of the house 60000 iii GOS ... View the full answer