26. On 1 May 1993 Mr F purchased a house in Southampton for 100,000 and declared it as his main residence. After 320 months he sold the house on 31 December 2019 for 350,000 Out of 320 months he was able to occupy (stay) in the house only for a period of 280 months Calculate the gain, if any, arising on the disposal of the house on 31 December 2019 after claiming PPR relief Sale 350,000 less: Cost (100,000) 250.000 Capital Gain before reliefs Less: Principal Private Residence (PPR) exemption 250,000 * 280/320 (218.750) 31,250 Chargeable Gain after relief Comprehensive Question: 27.Mr. Jack sold the following assets during the tax year 2019/20: On 11 August 2019, Jack sold a holiday villa for his sister for E50,000, even though the market value was 80,000. He incurred selling cost of 500. Jack had acquired the villa on 1 June 2010 for 25,000 and had paid legal fees on acquisition of 300. On 1 May 2012 he incurred capital expenditure of 5,000. b) He also sold a painting for 8,000 in Dec 2019. The painting had been purchased in May 2010 for 4,500. c) He also sold his old jewellery for 4,000 in Dec 2019. The Jewellary had been purchased in May 2012 for 10,000. 10% is the Selling cost incurred. d) Jack runs a small business in a workshop, which he purchased 10 years ago for 100,000 is used 60% for business purposes and the balance 40% has been rented. Now sold this workshop for 300,000 in February 2020. He reinvested the sale proceeds in new building, which cost him E380,000 on 10 January 2021, which is used fully for business purposes. e) Jack gifted 20,000 shares in A Ltd (an unquoted company) to his daughter, the market value on the date of gift was 60,000. He purchased the shares for 20,000 in August 2006. Jack gifted 5,000 shares in B Ltd, a quoted company. On the date of gift, the market value of the shares of B Ltd was 40,000. The cost of the shares was 8,000. 9) Jack sold his shop to his friend for 50,000, which cost him 30,000. The market value of the shop on the date of gift was 70,000. h) Jack sold his main residence for 300,000, which he owned from last 240 months. The cost of the Residence was 100,000. The house was occupied by him for 180 months. 1) He sold a vase for 3,000, which he purchased for 5000 3) Jack purchased a painting for 30,000 in Jan 2005.It was destroyed in Sept 2019. He received an insurance proceeds of 50,000 and received a scrap value of 2,000. Jack spent 45,000 and purchased similar painting in February 2020. k) Capital losses brought forward from previous years is 45,000. You are required to calculate the Capital gains and CGT for the tax year 2019/20 assuming he will take all available reliefs. Also assume that his taxable income is 25,000 and he gave donation of 4,800 during the tax year. Specify the due date for the payment of CGT. 26. On 1 May 1993 Mr F purchased a house in Southampton for 100,000 and declared it as his main residence. After 320 months he sold the house on 31 December 2019 for 350,000 Out of 320 months he was able to occupy (stay) in the house only for a period of 280 months Calculate the gain, if any, arising on the disposal of the house on 31 December 2019 after claiming PPR relief Sale 350,000 less: Cost (100,000) 250.000 Capital Gain before reliefs Less: Principal Private Residence (PPR) exemption 250,000 * 280/320 (218.750) 31,250 Chargeable Gain after relief Comprehensive Question: 27.Mr. Jack sold the following assets during the tax year 2019/20: On 11 August 2019, Jack sold a holiday villa for his sister for E50,000, even though the market value was 80,000. He incurred selling cost of 500. Jack had acquired the villa on 1 June 2010 for 25,000 and had paid legal fees on acquisition of 300. On 1 May 2012 he incurred capital expenditure of 5,000. b) He also sold a painting for 8,000 in Dec 2019. The painting had been purchased in May 2010 for 4,500. c) He also sold his old jewellery for 4,000 in Dec 2019. The Jewellary had been purchased in May 2012 for 10,000. 10% is the Selling cost incurred. d) Jack runs a small business in a workshop, which he purchased 10 years ago for 100,000 is used 60% for business purposes and the balance 40% has been rented. Now sold this workshop for 300,000 in February 2020. He reinvested the sale proceeds in new building, which cost him E380,000 on 10 January 2021, which is used fully for business purposes. e) Jack gifted 20,000 shares in A Ltd (an unquoted company) to his daughter, the market value on the date of gift was 60,000. He purchased the shares for 20,000 in August 2006. Jack gifted 5,000 shares in B Ltd, a quoted company. On the date of gift, the market value of the shares of B Ltd was 40,000. The cost of the shares was 8,000. 9) Jack sold his shop to his friend for 50,000, which cost him 30,000. The market value of the shop on the date of gift was 70,000. h) Jack sold his main residence for 300,000, which he owned from last 240 months. The cost of the Residence was 100,000. The house was occupied by him for 180 months. 1) He sold a vase for 3,000, which he purchased for 5000 3) Jack purchased a painting for 30,000 in Jan 2005.It was destroyed in Sept 2019. He received an insurance proceeds of 50,000 and received a scrap value of 2,000. Jack spent 45,000 and purchased similar painting in February 2020. k) Capital losses brought forward from previous years is 45,000. You are required to calculate the Capital gains and CGT for the tax year 2019/20 assuming he will take all available reliefs. Also assume that his taxable income is 25,000 and he gave donation of 4,800 during the tax year. Specify the due date for the payment of CGT