Question: Please show full solution so that I can understand each steps. No computer generated answers please. 40. Details of Sophia's earnings and income for the

Please show full solution so that I can understand each steps. No computer generated answers please. Please show full solution so that I can understand each steps. No

40. Details of Sophia's earnings and income for the tax year ending 5 April 2021 are set out below: Salary 55,000 Bonus received on 7 April 2020 for performance in 19/20 tax year 2,700 Bonus received on 4 April 2021 for performance in 20121 tax year 3,500 3 per cent of Her contribution to company pension scheme Salary 4 per cent of Her employer's contribution to company pension scheme Salary Interest from bank account savings (Non ISA) 1,300 Interest from a cash ISA 900 Coupons from UK Fixed Interest Government Stock 1,000 Premium bond prize 800 Non-ISA dividends from investments in UK ordinary shares 3,000 Dividends from investments in UK ordinary shares held in an ISA 2,800 Capital gains from selling ordinary shares 14,000 Capital gains from selling an antique vase (total sale price 5,500) 2,500 a) Calculate her total liability for Income and Capital Gains tax assuming she is resident in England. [8 marks] Mira owned a second home which she hadn't been using and on 1 April 2021 she consequently sold this property for 275,000. Other information: The home was purchased for 230,000 on 1 April 2018. Original purchase costs 750. Sale costs 1,250. Cost of building kitchen extension on second home 15,000. Inflation between 1 April 2018 and 1 April 2021 was 10%. No other capital gains were made during the tax year. You may assume that Mira is based in England for tax purposes and is a higher rate tax payer. b) Determine Mira's liability for Capital Gains tax in respect of the tax year 2020/21 [3 marks] c) State the latest date on which her tax liability under b) can be paid without incurring a penalty for late payment. [1 mark] [Total: 12 marks]

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