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King, a wealthy client of your firm with a significant property portfolio, requires advice on the sale of some unquoted shares and on the capital gains tax.

– Is resident and domiciled in the UK.
– Is an additional rate taxpayer.
– Has used his capital gains tax annual exempt amount for the tax year 2015/16.

King’s plans:
– On 1 September 2015, King will sell some of his shares in Wye Ltd.

Sale of shares in Wye Ltd:
– Wye Ltd is an unquoted investment company.
– King acquired 5,000 shares in Wye Ltd on 1 June 2002 at a cost of £5 each.
– These shares will be worth £45 each on 1 September 2015.
– King will sell sufficient shares to generate after-tax proceeds of £30,000.

(a) Calculate the minimum number of shares in Wye Ltd which King must sell to generate after-tax proceeds of £30,000. (3 marks)

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