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Boris is a married man aged 56


Boris is a married man aged 56. He is semi-retired but still works part-time as an accountant. For the 2019-20 tax year his income from all sources (after deduction of personal allowances) was £31,000. He had unrelieved capital losses brought forward from earlier years of £15,000. During the tax year 2019-20 he made the following capital transactions:

A. On 13th May 2019 Boris sold a buy-to-let house for £120,000, incurring agents’ and legal fees of £1,750. He acquired the house in 1992 for £45,000, and survey and legal fees cost £750. The house was “not fit for human habitation” and before it could be let to a tenant Boris spent £22,000 on a complete renovation (this expenditure qualifies as “enhancement expenditure”). This house was not his Principal Private Residence at any time.

B. On 21st July 2019 Boris gave a valuable portrait (market value £130,000) to the National Portrait Gallery. He inherited this painting from his uncle in 2002, when its probate value was £75,000. There were no incidental costs of either disposal or acquisition.

C. On 1st November 2019 Boris sold a second buy-to-let house to his brother Joe for £50,000. The market value of the house at that date was £95,000. Legal costs for the sale were £800. Boris inherited this house in 1987 from his grandmother (probate value £40,000, no incidental costs of acquisition). The house was not his Principal Private Residence at any time.

D. On 12th December 2019 Boris sold an antique clock for £5,500 (no incidental costs of disposal). He had purchased the clock for £6,500 in 2017 from an antique shop (no incidental costs of acquisition).

E. On 3rd April 2020 Boris sold 1,000 shares in XYZ plc for £9.50 each. Ignore incidental costs, which were minimal. He acquired his shareholding over a period of time as follows:

1st August 2019 acquired 1000 shares for £1 per share
15th March 2020 acquired 100 shares for £8 per share
3rd April 2020 acquired 600 shares for £9 per share

(i) Compute the chargeable capital gain or loss on each of the above transactions.
10 marks
(ii) Calculate Boris’s Capital Gains Tax liability for 2019-20 and state the due date for payment. Allocate the annual exemption and losses in the most
advantageous way.

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