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.

Answer rating: 100% (QA)

a 1 Antique vase Capital gain Sale price Purchase price 5250 10000 4750 2 ... View the full answer