Question
Patrick acquired the shares in a company for STG 60,000 in 2012. He sold the shares to his son Stephen in 2018 for STG 120,000
Patrick acquired the shares in a company for STG 60,000 in 2012. He sold the shares to his son Stephen in 2018 for STG 120,000 and the market value of the shares STG 170,000. Stephen sold the shares subsequently in 2022 for STG 300,000. 1. Calculate Patricks taxable gain and tax payable on the original sale. Assume that the gain is Patricks only income in that year, and he has no unused capital gain allowances or losses from prior years Calculate Stephens capital gain and taxes payable when he makes the subsequent disposal If he earned STG 75,000 in employment income, STG 15,000 interest income and had a loss of STG 7,500 from the prior year but no unused capital cost allowance.
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