Problematic Ltd sold the following assets during the year ended 31 March 2020: (1) On 14 June 2019 16,000 1 ordinary shares in Easy plc were sold for 54,400. Problematic Ltd had originally purchased 15,000 shares in Easy plc on 26 June 2005 for 12,600. On 28 September 2008 Easy plc made a 1 for 3 rights issue. Problematic Ltd took up its allocation under the rights issue in full paying 2.20 for each new share issued. Indexation factors are as follows: June 2005-September 2008 = 0.136 September 2008 December 2017 = 0.273 September 2008-June 2019 = 0.322 (2) On 28 January 2020 a freehold factory was sold for 172,000. The indexed cost of the factory on that date was 127,000. Problematic Ltd has made a claim to hold over the gain on the factory against the cost of a replacement leasehold factory under the rollover relief (replacement of business assets) rules. The leasehold factory has a lease period of 20 years, and was purchased on 10 December 2019 for 154,800. The two factory buildings have always been used entirely for business purposes. Required: (a) Calculate Problematic Ltd's chargeable gains for the year ended 31 March 2020. (9 marks) (b) Advise Problematic Etd of the carried forward indexed base cost of the leasehold factory. (1 mark) (e) On 24 June 2019, Jerome made a gift of his entire 12% holding of 12.000 E1 ordinary shares in Reward Ltd, an unquoted trading company, to his son. The market value of the shares on that date was 98,400. The shares had been purchased on 15 March 2006 for 39,000 On 24 June 2019, the market value of Reward Ltd's chargeable assets was 540,000, of which 460,000 was in respect of chargeable business assets. Jerome and his son will elect to hold over the gain on this gift of a business asset. Required: What is the amount of hold over relief that can be claimed on the gift of the Reward Ltd shares and the base cost of the shares for his son? (3 marks) What is the CGT liability payable by Jerome? (2 marks) Problematic Ltd sold the following assets during the year ended 31 March 2020: (1) On 14 June 2019 16,000 1 ordinary shares in Easy plc were sold for 54,400. Problematic Ltd had originally purchased 15,000 shares in Easy plc on 26 June 2005 for 12,600. On 28 September 2008 Easy plc made a 1 for 3 rights issue. Problematic Ltd took up its allocation under the rights issue in full paying 2.20 for each new share issued. Indexation factors are as follows: June 2005-September 2008 = 0.136 September 2008 December 2017 = 0.273 September 2008-June 2019 = 0.322 (2) On 28 January 2020 a freehold factory was sold for 172,000. The indexed cost of the factory on that date was 127,000. Problematic Ltd has made a claim to hold over the gain on the factory against the cost of a replacement leasehold factory under the rollover relief (replacement of business assets) rules. The leasehold factory has a lease period of 20 years, and was purchased on 10 December 2019 for 154,800. The two factory buildings have always been used entirely for business purposes. Required: (a) Calculate Problematic Ltd's chargeable gains for the year ended 31 March 2020. (9 marks) (b) Advise Problematic Etd of the carried forward indexed base cost of the leasehold factory. (1 mark) (e) On 24 June 2019, Jerome made a gift of his entire 12% holding of 12.000 E1 ordinary shares in Reward Ltd, an unquoted trading company, to his son. The market value of the shares on that date was 98,400. The shares had been purchased on 15 March 2006 for 39,000 On 24 June 2019, the market value of Reward Ltd's chargeable assets was 540,000, of which 460,000 was in respect of chargeable business assets. Jerome and his son will elect to hold over the gain on this gift of a business asset. Required: What is the amount of hold over relief that can be claimed on the gift of the Reward Ltd shares and the base cost of the shares for his son? (3 marks) What is the CGT liability payable by Jerome? (2 marks)