The gift of 4,000 shares on 23 October 2012 was to Leroy’s daughter. On that date the shares were quoted on the Stock Exchange at £7·80–£8·20. There were no recorded bargains. Holdover relief is not available in respect of this disposal.

Neither disposal of Jerk-Chic plc shares during the tax year 2012–13 qualifies for entrepreneurs’ relief.

For the tax year 2012–13 Leroy is a higher rate taxpayer, and will remain so for the tax year 2013–14. Leroy regularly makes disposals of other investments, so no annual exempt amount is available for either of the tax years 2012–13 or 2013–14.

Required:
(i) Calculate the chargeable gains arising from Leroy’s disposals of Jerk-Chic plc shares during the tax year 2012–13. (4 marks)

(ii) State why it would have been beneficial if Leroy had delayed the sale of the 12,000 shares in Jerk-Chic plc until 6 April 2013. (1 mark)