*B9 Gillian purchased 10,000 ordinary shares in Downtown plc in January 2004 for £20,000.

In October 2009, 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:

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

£3 cash 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 the chargeable gain arising in 2009-10.

*B10 Joan has been a full-time director of Sunnybank Pursuits Ltd (a trading company) since 1990 and has owned 10% of the company's ordinary shares since 1992. She retired in February 2010 and gave all of her shares in the company to her daughter, Sylvia. The capital gain on the gift was £720,000 before deducting any reliefs.
Joan claims entrepreneurs' relief in relation to the disposal. Also, Joan and Sylvia have jointly elected that the capital gain arising on the disposal should be held-over.
The market values of the assets in the company's balance sheet at the time that the shares were gifted were:
£
Land and buildings 4,000,000 Plant and machinery 2,000,000 Goodwill 1,000,000 Listed shares 1,000,000 All items of plant and machinery cost more than £6,000 each and are valued at more than £6,000 each in February 2010.
You are required to:
Calculate Joan's assessable capital gain in 2009-10.