Gillian purchased 10,000 ordinary shares in Downtown plc in January 2015 for £20,000.

In October 2020, Upmarket plc acquired the whole of the share capital of Downtown plc following a take-over bid. The terms of the take-over offer were:

for every five shares held in Downtown plc. The share prices of Upmarket plc immediately after the take-over were:
Ordinary shares £10 each, and Preference shares £3 each.

You are required to:

Calculate Gillian's chargeable gain arising in 2020-21.

Transcribed Image Text:

One ordinary share in Upmarket plc, and Two preference shares in Upmarket plc, and 3 cash