Question 2 Frank disposed of the following assets during the 2021 22 tax year see (i) to (v) Frank sold a motor car for 20,400 The car was purchased in January 2012 for 17,800 Frank sold an antique vase for 9,000 The antique vase had been purchased in January 2014, for 7,500 On 31 st August 2021, Frank sold a house for 202,000 The house had been purchased on 1 January 2004 for 96,000 and used by Frank as follows Months Details 18 Occupied 18 Unoccupied travelling overseas 24 Unoccupied required to work overseas by his employer 11 Occupied 30 Unoccupied required to work elsewhere in the UK by his employer 22 Unoccupied Travelling overseas 26 Unoccupied required to work elsewhere in the UK by his employer 27 Occupied 7 Unoccupied required to work overseas by his employer 23 Unoccupied Travelling overseas 6 Unoccupied Live with his parents Total 212 months Frank let the house during all of his periods of absence Throughout the period 1 st January 2004 to 31 st August 2021, Frank did not have any other main Residence Frank sold three acres of land for 320,000 He had originally purchased four acres of land in July 2014 for 240,000 The market value of the unsold acre of land on the date of the sale was 80,000 In March 2022, Frank sold a freehold cottage for 145,000 The cottage had originally been purchased by his wife in July 2011 for 111,000 The wife transferred the cottage to Frank in November 2012, when it had been valued at 115,000 Required Compute Franks capital gain tax liability for the tax year 2021 22, Assume that Frank is a higher rate taxpayer (Total 25 marks)

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Question 2

Frank disposed of the following assets during the 2021/22 tax year - see (i) to (v)

Frank sold a motor car for 20,400. The car was purchased in January 2012 for 17,800.

Frank sold an antique vase for 9,000. The antique vase had been purchased in January 2014, for 7,500.

On 31^st August 2021, Frank sold a house for 202,000. The house had been purchased on 1 January 2004 for 96,000 and used by Frank as follows:

Months	Details
18	Occupied
18	Unoccupied travelling overseas
24	Unoccupied- required to work overseas by his employer
11	Occupied
30	Unoccupied -required to work elsewhere in the UK by his employer
22	Unoccupied -Travelling overseas
26	Unoccupied -required to work elsewhere in the UK by his employer
27	Occupied
7	Unoccupied- required to work overseas by his employer
23	Unoccupied -Travelling overseas
6	Unoccupied -Live with his parents
Total: 212 months

Frank let the house during all of his periods of absence. Throughout the period 1^st

January 2004 to 31^st August 2021, Frank did not have any other main Residence.

Frank sold three acres of land for 320,000. He had originally purchased four acres of land in July 2014 for 240,000. The market value of the unsold acre of land on the date of the sale was 80,000.

In March 2022, Frank sold a freehold cottage for 145,000. The cottage had originally been purchased by his wife in July 2011 for 111,000. The wife transferred the cottage to Frank in November 2012, when it had been valued at 115,000.

Required:

Compute Franks capital gain tax liability for the tax year 2021/22, Assume that Frank is a higher rate taxpayer. (Total 25 marks)