*21.9 In 2002, Shaun bought 20% of the ordinary shares of a trading company. The shares cost...
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*21.9 In 2002, Shaun bought 20% of the ordinary shares of a trading company. The shares cost
£140,000. He owned the shares (and was a director of the company) until January 2010 when he gave all the shares to a friend. On the date of the gift, the shares had a market value of £500,000 and the company's assets were valued as follows:
£
Freehold land and buildings 1,700,000 Goodwill 500,000 Investments 100,000 Motor cars 40,000 Net current assets 160,000 Calculate the chargeable gain, assuming that entrepreneurs' relief is claimed and that both Shaun and his friend elect that the gain arising should (as far as possible) be heldover.
Assume also that Shaun has made no previous claims for entrepreneurs' relief.
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