The following tax rates and allowance are to be used in answering the questions

Capital gain tax Normal Residential

Rates Property

Lower rate 10% 18%

Higher rate 20% 28%

Annual exempt amount 12,300

Entrepreneurs' relief and investors' relief:

-Lifetime limit 1,000,000

-Rate of tax 10%

Question 3

Peter made the following disposals of assets during the tax year 2020/21

30 June 2020

Residential investment property for 150,400 less cost of disposal of 1,280 acquired for 79,00

27 July 2020

Part of a plot of land used for agricultural purposes. The proceeds of sale were 35,000. The cost of disposal was 700. The proceeds of sale were 35,000. The original cost of the land was 54,000. The remainder of the land is worth 70,000.

1 September 2020

A vase which was destroyed. it cost 12,000. Compensation of 20,000was received on 30 September 2020. Peter ought a new vase as a replacement for 17,000 on 21 December 2020.

Peter had taxable income of 33,100 in 2020/21

Required

(a) Calculate Peter's capital gains tax payable for the year 2020/21