Question
Marjorie, a higher rate taxpayer, sold her home on 31 December 2021 for 945,000. Marjorie purchased the house on 1 January 2008 for 249,950 plus
Marjorie, a higher rate taxpayer, sold her home on 31 December 2021 for 945,000. Marjorie purchased the house on 1 January 2008 for 249,950 plus stamp duty land tax of 2,500 and legal fees of 500. Marjorie lived in the house for a year. Marjorie then worked overseas for five years from 1 January 2009. For the entire time that Marjorie was working overseas, the house was let to various tenants. Marjorie returned o live in the house on 1 January 2014 and remained there for three years until 31 December 2016. In that time she shared occupation of the property occupying 75% of the house herself. On 1 January 2017 Marjorie moved in with her mother and never reoccupied the house, once again Marjorie let the whole property to tenants in her absence. Marjorie sold 1,000 of her shares in Flower plc in January 2022 for 28,000. Marjorie had bought 1,000 shares for 12,000 in February 2000, 2,000 shares for 26,600 in December 2010 and had taken up her rights in a 1 for 2 rights issue in June 2012 for 15 per share. Marjorie has never been an employee of Flower plc. Requirements 2.1 Calculate the chargeable gain on disposal of the house. 2.2 Calculate the chargeable gain on disposal of the shares. 2.3 Calculate Marjorie's capital gains tax liability for 2021/22.
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