Question
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.
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:
- Ignoring any entrepreneurs relief
Assuming Harry is entitled to entrepreneurs relief
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Introduction To Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric W. Noreen
6th Edition
1259160599, 978-1259160592
