use tax tables 2020/21

PARTC vil. MoFin Ltd On 10 November 2020, GoMo Ltd purchased 80% (800 shares) of the issued share capital in a new UK company called 'MoFin Ltd GoMo Ltd paid 160,000 for the issued share capital. 'MoFin" was originally run as a sole-trade by Mr Smith. On 10 November 2020, Mr Smith transferred the business assets in to a newly incorporated company "MoFin Ltd", in retum he received 160,000 cash and a 20% shareholding in the company (200 shares) The market value of the net assets Mr Smith transferred to MoFin Ltd' on incorporation was: Market value Internally generated goodwill 60,000 Freehold office 127,000 * The freehold office was bought March Debtors 25,000 2011 for 50,000 Creditors (12,000) Total net assets 200,000 Mr Smith, (who is 63 and a higher rate taxpayer), remains involved with the business as a part- time director of MoFin Ltd. RTC - Capital Gains (For question 6 use information from paragraph vii) Calculate the capital gains tax Mr Smith will owe to HMRC following the incorporation of 'MoFin Ltd' in the tax year 2020/21. Your answer should take into consideration any incorporation and business asset disposal (entrepreneur's) relief which are available to Mr Smith