QUESTION 4 Eleanor Evans had a cosmetics manufacturing business in Poole, Dorset. Eleanor bought a factory for 1,700,000 in February 2009 and sold it for 2,700,000 in October 2019. She bought a new factory to replace the first factory in November 2019 for 2,300,000. Both factories were clearly used in Eleanor Evans's trade of cosmetics manufacture. She sold the factory in July 2020 for 3,100,000. Eleanor's trading income for tax purposes in the year to 5 April 2020 and the year to 5 April 2021 is calculated as 300,000 and 400,000 respectively. Required (as the tax advisor) write a letter to Eleanor Evans who has asked you to clarify and explain to her how the tax is calculated, what reliefs are available to her and the best way to use those reliefs. In particular, your answer should include the following items (please indicate these using headings in your letter and cross referencing to detailed computations in an Appendix): a) Calculate the chargeable gain and Capital Gains Tax payable in respect of the sale of the first factory assuming that rollover relief is claimed. Please show and explain your workings clearly (8 marks) b) Calculate the chargeable gain and Capital Gains Tax payable in respect of the sale of the second factory in July 2020. Please show and explain your workings clearly. (7 marks)