Kitten is the controlling shareholder in Kat Ltd, an unquoted trading company.

Kat Ltd
Kat Ltd sold a freehold factory on 31 May 2015 for £364,000, which resulted in a chargeable gain of £120,700. The factory was purchased on 1 October 2003 for £138,600, and further capital improvements were immediately made at a cost of £23,400 during the month of purchase. Further improvements to the factory were made during the month of disposal. The relevant retail prices indexes (RPIs) are as follows:

October 2003      182·6
May 2015            258·0

Kat Ltd is unsure how to reinvest the proceeds from the sale of the factory. The company is considering either purchasing a freehold warehouse for £272,000, or acquiring a leasehold office building on a 40-year lease for a premium of £370,000. If either reinvestment is made, it will take place on 30 September 2016.

All of the above buildings have been, or will be, used for the purposes of Kat Ltd’s trade.

Kitten
Kitten sold 20,000 £1 ordinary shares in Kat Ltd on 5 October 2015, which resulted in a chargeable gain of £142,200. This disposal qualified for entrepreneurs’ relief.

Kitten had originally subscribed for 90,000 shares in Kat Ltd on 7 July 2008 at their par value. On 22 September 2011, Kat Ltd made a 2 for 3 rights issue. Kitten took up her allocation under the rights issue in full, paying £6·40 for each new share issued.

Kitten also sold an antique vase on 16 January 2016, which resulted in a chargeable gain of £27,900.
For the tax year 2015–16, Kitten had taxable income of £12,000.

What is Kitten’s capital gains tax (CGT) liability for the tax year 2015–16?
A £17,244
B £22,032
C £20,053
D £18,924