George bought a shop in October 1998 for 290,000 and used it in his business until April 2010, when he gave it to hisfriend Harry. The market value of the shop at that time was 570,000.

Harry ran the shop as a sole trader for a while but decided to sell the shop in November 2019. He received 950,000 for the shop.

George and Harry claimed gift relief on the shop. Harry had no other disposals in 2019/2020.

Harry is a higher rate income tax payer.

Required

Calculate the Capital Gains Tax payable by Harry on his disposal of the shop:

1. Ignoring any entrepreneurs relief
2. Assuming Harry is entitled to entrepreneurs relief

   TAX DATA

   CORPORATION TAX

   Augmented Profits Corporation Tax rate Corporation Tax rate

   Financial Year 2018 Financial Year 2019

   (1.4.2018 to 31.3.2019) (1.4.2019 to 31.3.2020)

   All Profits Main Rate 19% Main Rate 19%

   NATIONAL INSURANCE

   Tax Year 2019/2020

   Self-employed National Insurance Contributions (sole traders and partners)

   Class 2 contributions are payable at a flat rate of 3.00 per week, and in addition,

   Class 4 contributions are payable on the profits as follows:

   9% of profits for the year between 8,632 and 50,000 plus

   2% of profits above 50,000

   INCOME TAX

   Personal Allowancefor tax year 2019/20: 12,500

   Tax bands 2019/20

   Basic rate 20% 0-37,500

   Higher rate 40% 37,501 to 150,000

   Additional rate 45% over 150,000

   CAPITAL GAINS TAX FOR INDIVIDUALS

   2019/20

   Annual Exempt Amount 12,000

   Rates

   Gains on other assets 10% and 20% (for higher rate income tax payers)

   (10% where entrepreneurs relief is claimed)