Question
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.
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 31st 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 1st
January 2004 to 31st 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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