760 others answered this question

Question 1a ii

Your manager has had a meeting with Kantar. Kantar recently appointed your firm to be his tax advisers. Extracts from the memorandum recording the matters discussed at the meeting and from an email from your manager are set out below.

Extract from the memorandum 
Capital transactions

1 November 2012 Kantar inherited eight acres of land from his uncle. Kantar's uncle had purchased the land for £70,000 in 1996. At the time of the uncle's death, the land was worth £200,000.
5 November 2012 Kantar gave £400 to each of his three nephews.
1 February 2014 On this date, when the eight acres of land were worth £290,000, Kantar gave two acres, valued by an independent expert at £100,000, to his son. Capital gains tax gift relief was not available in respect of this gift.
2 February 2014 Kantar sold the remaining six acres of land at auction for £170,000.

Kantar has not made any disposals for the purposes of capital gains tax other than those set out above.

Extract from an email from your manager 
Please prepare notes for use in a meeting with Kantar. The notes should address the following issues: 
(a) Capital transactions
 
(ii) A calculation of Kantar's chargeable gains and capital gains tax liability for the tax year 2013/14.

Tax manager

Required: Prepare the meeting notes requested in the email from your manager. The following marks are available: (a) Capital transactions. (ii) Capital gains tax. (4 marks)

Note: He is a higher rate taxpayer