(a)Peter made the following acquisitions of ordinary shares in Acorn plc:

Date

Number of Shares

Cost ()

27 September 1999

1,000

3,500

28 July 2001

800

2,900

3 February 2006

600

3,000

5 July 2010

200

1,000

Compute the chargeable gain arising on 1 February 2020 when Peter sold 1,200 shares for 5 each, assuming that he made no further acquisitions within the next 30 days.

(b)Gloria bought 10 acres of land for 10,000 in August 1990. She sold 3 acres of the land for 30,000 in January 2020. At that time, the remaining land was worth 90,000.

In March 2020 Gloria sold the remaining acres for 75,000.

Compute the chargeable gains arising on disposal of the asset.

(c)Mike sold a picture on 1 February 2020 for 6,900. He had acquired it on 1 March 2004 for 3,200.

Calculate the chargeable gain arising on the disposal.

(d) Which of the following disposals are exempt from, and which are chargeable to, capital gains tax?

(1) Gift of a necklace which was bought for 4,000. Its market value at the date of gift was 7,000.

(2) Sale of shares in a quoted trading company for 2,000 which were bought for 1,000.

(3) Sale of a motor car, for 5,000, which was used for business purposes. It was acquired for 6,000.

(4) Sale of a boat for 20,000, which was acquired for 15,000.

(5) Sale of a painting for 5,000, which was acquired for 1,000

(e)Mary bought a house on 1 January 2000 for 40,000.The house was sold on 1 January 2020 for 200,000.Mary occupied the house throughout her period of ownership with the exception of the period between 1 June 2002 and 31 May 2006 when she lived with a friend .During this time the house stood empty.

Compute the chargeable gain arising on the disposal of house.

(f)In July 2010, Sandy bought an oil painting for 150,000. In October 2019, the painting was damaged by fire. In February 2020, Sandy received compensation from her insurance company of 30,000. Sandy spent none of the insurance money on restoration and the damaged painting was valued at 220,000 in February 2020.

Compute the chargeable gain arising on receiving compensation from insurance company and the allowable expenditure of painting in February 2019.

(a) Peter made the following acquisitions of ordinary shares in Acorn plc: Date Number Cost (E) of Shares 27 September 1999 1,000 3,500 28 July 2001 800 2,900 3 February 2006 600 3,000 5 July 2010 200 1,000 Compute the chargeable gain arising on 1 February 2020 when Peter sold 1,200 shares for $5 each, assuming ibat he made no further acquisitions within the next 30 days. (b) Gloria bought 10 acres of land for $10,000 in August 1990. She sold 3 acres of the land for $30,000 in January 2020. At that time, the remaining land was worth $90,000. In March 2020 Gloria sold the remaining acres for $75,000. Compute the chargeable gains arising on disposal of the asset. (c) Mike sold a picture on 1 February 2020 for $6,900. He had acquired it on 1 March 2004 for $3,200. Calculate the chargeable gain arising on the disposal. (d) Which of the following disposals are exempt from, and which are chargeable to, capital gains tax? (1) Gift of a necklace which was bought for $4,000. Its market value at the date of gift was $7,000. (2) Sale of shares in a quoted trading company for $2,000 which were bought for $1,000. (3) Sale of a motor car, for $5,000, which was used for business purposes. It was acquired for $6,000. (4) Sale of a boat for 20,000, which was acquired for $15,000. (5) Sale of a painting for $5,000, which was acquired forf 1,000 (e) Mary bought a house on 1 January 2000 for $40,000. The house was sold on 1 January 2020 for $200,000.Mary occupied the house throughout her period of ownership with the exception of the period between 1 June 2002 and 31 May 2006 when she lived with a friend During this time the house stood empty. Compute the chargeable gain arising on the disposal of house. (f) In July 2010, Sandy bought an oil painting for $150,000. In October 2019, the painting was damaged by fire. In February 2020, Sandy received compensation from her insurance company of $30,000. Sandy spent none of the insurance money on restoration and the damaged painting was valued at $220,000 in February 2020. Compute the chargeable gain arising on receiving compensation from insurance company and the allowable expenditure of painting in February 2019