1. Discuss whether the profit made by Lisa when she swapped her LCH shares for PRC shares will be regarded as income or capital in nature.
2. Your discussion only needs to refer to the income or capital in nature elements of the general definition of gross income" as defined in section 1(1) of the Income Tax Act.

Lisa (37 years old) is a qualified surveyor and she has been doing part-time work for Purple Rain Construction (PRC). Her big dream however is to work for PRC permanently. On Lisa's 21st birthday, she received 5000 shares in Leaf Capital Holdings (LCH) from her mother, as a birthday present. The share price on that date was R5 per share. Lisa has a friend, Simon. Simon owns shares in PRC. Lisa has always wanted to own shares in PRC because, as a shareholder, she will be able to do more extensive work for PRC. After discussions with Simon, she swapped 1000 of her LCH shares for 1000 of Simon's PRC shares on 5 February 2023. The share price of both the PRC and LCH shares was R15 per share on the day of the share swap