(a) A chargeable asset was bought in June 2019 for 41,200 and sold in August 2023 for...
Question:
(a) A chargeable asset was bought in June 2019 for £41,200 and sold in August 2023 for £73,350. Compute the chargeable gain.
(b) A chargeable asset was bought for £15,000 in August 2015. Legal costs of £500 were incurred when the asset was acquired. The owner of the asset incurred enhancement expenditure of £2,000 in May 2016 and £3,000 in June 2020.
The asset was sold in July 2023 for £28,000. Legal costs of £700 were incurred on the sale. Compute the chargeable gain.
(c) A taxpayer bought a chargeable asset for £40,000 in February 2018. The asset was sold for £30,000 in October 2023.
Compute the chargeable gain or allowable loss if:
(i) the asset was sold in an arm's length transaction
(ii) the asset was sold to the taxpayer's brother and had a market value of £45,000 on the date of the sale
(iii) the asset was sold to the taxpayer's wife (who lives with him) and had a market value of £45,000 on the date of the sale.
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