Michel and Joan Arc are a married couple. They disposed of the following assets during the tax year 2018/19:

Jointly owned property

On 30 September 2018 Michel and Joan sold a house for 381,900. The house had been purchased on 1 October 1998 for 86,000.

Michel and Joan occupied the house as their main residence from the date of purchase until 31 March 2002 (42 months). The house was then unoccupied between 1 April 2002 and 31 December 2005 (45 months) due to Joan being required by her employer to work elsewhere in the United Kingdom.

From 1 January 2006 until 31 December 2012 (84 months) Michel and Joan again occupied the house as their main residence. From 1 January 2013 the house was then unoccupied until it was sold on 30 September 2018 (69 months).

Throughout the period 1 October 1998 to 30 September 2018 Michel and Joan did not have any other main residence.

MICHEL ARC

On 5 May 2018 Michel gifted 4 acres of land he owned to Joan. On that date the land was valued at 64,000. Michel had purchased the land on 21 June 2016 for 36,000.

JOAN ARC

On 7 July 2018 Joan sold the 4 acres of the land that had been gifted by Michel. The sale proceeds were 62,400.

On 15 October 2018 Joan disposed of a small business she had been running part time for many years.The only chargeable asset in the business was a warehouse and this resulted in a gain of 3,700.

Joan has taxable income of 23,945 for the tax year 2018/19. Michel does not have any taxable income.

Required:

Compute Michel and Joan's respective capital gains tax liabilities for the tax year

2018/19. (20 marks)