1. Capital Gains Tax Sean, a higher rate income taxpayer, made FIVE capital disposals in the year ended 5 April 2021. His disposals were :

Disposal One A residential property sold for 340,000 (before selling fees). This had been owned for 12 years and used as his main residence for the first 2 years and the last 6 months. In between it had been let-out to tenants while Sean lived elsewhere. During the early years of Seans absent from the property he worked abroad for 2 years and 3 months. The cost of the property including legal fees on purchase was 236,000. The incidental selling costs of the property were 4,000.

Disposal Two One antique silver candlestick from a set of four candlesticks sold for 28,000. The whole set had cost him 40,000 when he purchased them 9 years earlier. The remaining three candlesticks that Sean retained at the time of the sale were valued at 70,000.

Disposal Three A vintage motor car, which was in working order, was sold for 45,000. The car had cost 28,000 twelve years earlier.

Disposal Four An interest in a partnership trading business (which qualified for Business Asset Disposal Relief) sold for 70,000. The interest had cost him nothing.

Disposal Five A copyright sold for 25,000. The copyright was purchased for 24,000 when it had 12 years to run. At the date of sale it only had 4 years left to run. Sean had a capital loss brought forward at 6 April 2020 of 6,000. Until this year, he had not used any of his lifetime limit for Business Asset Disposal Relief.

Required (a) Calculate the gains and losses arising from the disposals. (10 Marks)

(b) Calculate Seans CGT liability for the year ended 5 April 2021. (5 Marks)

(c) Explain how the gain on the sale of company shares is calculated. In particular explain the matching rules and the reasons for these rules.