Tom Jones, aged 60, has been running his business for many years. He has decided to take early retirement. His daughter, Sonya, has been working in the business for the last 5 years. Tom would like to transfer the business to Sonya. Alternatively, a local businessman has made an offer to buy the business for 850,000. Sonya has always wanted to travel. She is considering moving to Australia in 2023. She has agreed with her father Tom to take over the business now. Before she leaves she hopes to sell the business to help fund her move to Australia.

REQUIRED: Advise Sonya of the capital gains tax liability she would have if she sells the business in 2023.

Note: Marks will be awarded for numerical examples used to support your advice