Part A: Harvey Harvey disposed of the following items during 2019/20: June 2019 Harvey sold his BMW Z4 car for 19,000. It was originally purchased in February 2017 for 43,000. September 2019 Harvey sold a painting that was one of a kind and painted by a famous artist for 7,100. He incurred auction fees of 300. He originally purchased the painting for 5,000 in April 2001 January 2020 Harvey owned a business making tailored suits. As he was nearing retirement, he decided to sell the shop to his son for 120,000. At the time the shop had a market value of 290,000. Harvey originally purchased the shop in 1995 for 45,000. He and his son made a joint election to claim gift relit. (Ignore entrepreneur's relief) Harvey is a higher rate taxpayer and has brought forward capital losses of 2,100. Donna Donna disposed of the following items during 2019/20 May 2019 Donna sold an antique watch valued at 18,900. Donna paid 5% commission to the auction house on disposal of the watch. The watch had originally been purchased on 1 005 for 14,700. August 2019 Donna acquired land in October 2015 for 98,000, incurring legal fees at this date of 1,790. Her intention was to build a house, however, there was a change in the building regulations, and residential property could not be built. She sold the land for 210,000. March 2020 Donna sold 3,000 shares in Specter Limited, where the total shares issued were 10,000. On the date of sale, they market value of 23 per share. She had originally acquired them for 3.20 per share in August 2004, when she started working at the company as director. Donna has taxable income of 14,000 and has brought forward capital losses of 300. Required a. Calculate the capital gains tax payable by Harvey for 2019/20 and state the due date for payment b. Calculate the capital gains tax payable by Donna for 2019/20 after claiming any available reliefs. PART B: Donna has three pieces of expensive jewellery which she would like to sell in the next tax year. She inherited them from her grandmother when they had a probate value of 9,000 in total (3,000 each). If she sold all three pieces together in the following tax year, she would receive proceeds of 45,000, or she could sell them for 15,000 each to different buyers. Requlred Explain how Donna could make the disposal of the jewellery, which would result in a taxable income of nil. (Assume 2019/20 rates and allowances apply throughout). PART C: Consider now that Harvey does not make a gift relief claim for the disposal of his shop, and instead of disposing of the business premises to his son, he sells him 100% of the shareholding in the business for its market value. Required Explain the circumstances in which Harvey would be able to claim entrepreneurs relief on the disposal of the shares to his son and the impact of such a claim. Part A: Harvey Harvey disposed of the following items during 2019/20: June 2019 Harvey sold his BMW Z4 car for 19,000. It was originally purchased in February 2017 for 43,000. September 2019 Harvey sold a painting that was one of a kind and painted by a famous artist for 7,100. He incurred auction fees of 300. He originally purchased the painting for 5,000 in April 2001 January 2020 Harvey owned a business making tailored suits. As he was nearing retirement, he decided to sell the shop to his son for 120,000. At the time the shop had a market value of 290,000. Harvey originally purchased the shop in 1995 for 45,000. He and his son made a joint election to claim gift relit. (Ignore entrepreneur's relief) Harvey is a higher rate taxpayer and has brought forward capital losses of 2,100. Donna Donna disposed of the following items during 2019/20 May 2019 Donna sold an antique watch valued at 18,900. Donna paid 5% commission to the auction house on disposal of the watch. The watch had originally been purchased on 1 005 for 14,700. August 2019 Donna acquired land in October 2015 for 98,000, incurring legal fees at this date of 1,790. Her intention was to build a house, however, there was a change in the building regulations, and residential property could not be built. She sold the land for 210,000. March 2020 Donna sold 3,000 shares in Specter Limited, where the total shares issued were 10,000. On the date of sale, they market value of 23 per share. She had originally acquired them for 3.20 per share in August 2004, when she started working at the company as director. Donna has taxable income of 14,000 and has brought forward capital losses of 300. Required a. Calculate the capital gains tax payable by Harvey for 2019/20 and state the due date for payment b. Calculate the capital gains tax payable by Donna for 2019/20 after claiming any available reliefs. PART B: Donna has three pieces of expensive jewellery which she would like to sell in the next tax year. She inherited them from her grandmother when they had a probate value of 9,000 in total (3,000 each). If she sold all three pieces together in the following tax year, she would receive proceeds of 45,000, or she could sell them for 15,000 each to different buyers. Requlred Explain how Donna could make the disposal of the jewellery, which would result in a taxable income of nil. (Assume 2019/20 rates and allowances apply throughout). PART C: Consider now that Harvey does not make a gift relief claim for the disposal of his shop, and instead of disposing of the business premises to his son, he sells him 100% of the shareholding in the business for its market value. Required Explain the circumstances in which Harvey would be able to claim entrepreneurs relief on the disposal of the shares to his son and the impact of such a claim