On 19 May 2017 Winston disposed of a painting, and this resulted in a chargeable gain of 46,560. For the tax year 2017/18 Winston has table income of 20,900 after the deduction of the personal allowance. Winston is considering the sale of a business that he has run as a sole trader since 01 July 2008. The business will be sold for 260,000 and this figure, along with the respective cost of each asset, is made up as follows: Sale proceeds Cost Freehold shop 140,000 80,000 Freehold warehouse 88,000 102,000 Net Current assets 32,000 32,000 260,000 The freehold warehouse has never been used by Winston for business purposes. REQUIRED Assuming that Winston does not sell his sole trader business, calculate his capital gains tax liability. Calculate Winstons capital gains tax liability for the tax year 2017/18 if he sold his sole trader business on 25 March 2018. [10 marks] Page 8 of 9 (b) On 03 December 2017 Renaldo sold two acres of land at auction for gross proceeds of 92,000. The auctioneers commission was 5% of the sale price. Renaldos wifes father had originally purchased three acres of land on 4 August 2002 for 19,500. He died on 17 June 2009, and the land was inherited by Renaldos wife. On that date the three acres of land were valued at 28,600. Renaldos wife transferred the land to Renaldo on 14 November 2012. On that date the three acres of land were valued at 38,000. Required. Compute Renaldos chargeable gain in respect of the disposal on 3 December 2017