Calculate Eric’s capital gain for the year of assessment 2021/22 after the annual exemption and the amount of capital gains tax payable by Eric for 2021/22, stating when the tax must be paid.
Question 2
During the year ended 5 April 2022 Eric (a higher rate taxpayer) disposed of the following asset:
(a) A small cottage in Devon which he had inherited in August 1988 when its value was £20,000 and he subsequently used as a holiday cottage for his own use. In September 1989 he had added a conservatory to the property at a cost of £3,500. Eric did not use the cottage as his main residence at any stage, and he sold it for £225,000 in July 2021. Eric incurred legal and estate agent’s fees of £1,500 on the disposal of the property.
(b) A vacant 8-hectare plot of land for £52,800 in February 2022. The plot was part of a 12-hectare plot originally bought by Eric for £31,700 in October 1988 and not used by him as a business asset nor is it associated with a residential property. Incidental costs of disposal were £1,300. The remaining 4-hectare plot was valued at £22,000 in February 2022.
© Eric sold a motor car for £18,400. The car was purchased in January 2012 for £17,800.
(d) Eric sold an antique vase for £9,000. The antique vase had been purchased in January
2014, for £5,000.
Required:
Calculate Eric’s
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