2. Silvia Moffat has made several capital disposals in the tax year 2019/20 and she has asked you to help her calculate her liability to capital gains tax. Silvia is UK resident and was born on 16 March 1980. She married Martyn in 2016 and has one daughter, Janice. Silvia has provided you with the following details: On 4 July 2019 Silvia gifted 35,000 1 ordinary shares in Estapona plc, a quoted trading company, to her daughter, Janice. On that date the shares were worth 158,900. Silvia had originally purchased 15,000 shares in Estapona plc on 7 August 2012 for 66,000. She purchased a further 29,000 shares on 21 April 2014 for 63,800. On 15 July 2017 Silvia took up a 1 for 4 rights issue offered by Estapona pic for 2.50 per share. On 4 July 2019 Estapona plc has a total issued share capital of 3,000,000 1 ordinary shares. On 12 November 2019 Silvia sold her Morris Minor motor car for its full market value of 37,700 to her cousin. She bought the car on 12 August 2015 for 19,900. On 31 December 2019 Silvia sold the family home for 956,000. The house had been purchased by Silvia on 1 March 2002 for 186,000. Silvia occupied the house as her main residence from the date of purchase until 31 July 2005 when she took a year off and went travelling overseas. Whilst travelling she secured a four year contract working abroad commencing on 1 August 2006 and was provided with living accommodation as part of her job. Her house in the UK was therefore unoccupied between 1 August 2005 and 31 July 2010. She returned to occupy the house as her main residence on 1 August 2010 until 30 September 2016 when, after her marriage, she moved into Martyn's house as her principal private. Silvia's house was then empty until the date of sale. On 13 January 2020 Silvia upgraded her kitchen and sold her old range cooker for 900. She purchased the cooker two years ago for 2,300. On 26 March 2020 Silvia sold four acres of land for 238,000. The four acres were part of a twenty acre plot that she purchased in April 2003 for 450,000. The sale was arranged by a local estate agent who charged a 4% fee for their professional services, which included legal costs. The value of the remaining sixteen acres plot still owned by Silvia on 26 March 2020 was 1,140,000. From your tax files you know that Silvia works full-time for DEW Ltd and has some investment income. Martyn does not work but has some investment income. Their taxable income and capital losses brought forward are as follows: Silvia Martyn Taxable income 34,820 10,200 Capital losses brought forward from 2018/19 8,740 Nil You also discover from Silvia that Martyn, her husband, who is also a client of yours, disposed of some shares in Bella Ltd on 18 April 2018. The disposal gave rise to a capital gains tax liability of 2,880. Martyn did not disclose this gain on his 2018/19 self- assessment tax return. Martyn sold the shares through a stock broker and assumed that they had included the associated tax liability in their fees and therefore he had no further tax liability to pay. As the sale is now over two years ago, the amount of tax involved is small and he was unaware of the need to pay any tax, Martyn does not intend to disclose details of the sale to HMRC. Silvia has asked you for advice on Martyn's tax position. Required (a) Calculate Silvia's capital gains tax liability for the tax year 2019/20 and state the due date of payment of the capital gains tax. (22 marks) (b) Explain how you could have helped Silvia reduce her capital gains tax liability arising in 2019/20 if she had informed you of her intended disposals before she had made them. (5 marks) (c) Discuss how you should deal with: (0) the request from Silvia for information in relation to Martyn's tax affairs, and (ii) the suggestion from Martyn that he does not intend to disclose details of the sale of shares in Bella Ltd to HMRC. (8 marks) Total: (35 marks)