You should assume that today’s date is 1 March 2013.

(a) Ginger has a holding of 10,000 £1 ordinary shares in Nutmeg Ltd, an unquoted trading company, which she had purchased on 13 February 2004 for £2·40 per share. The current market value of the shares is £6·40 per share, but Ginger intends to sell some of the holding to her daughter at £4·00 per share during March 2013.

Ginger and her daughter will elect to hold over any gain as a gift of a business asset.

For the tax year 2012–13, Ginger will not make any other disposals, and has therefore not utilised her annual exempt amount.

Required:
Explain how many £1 ordinary shares in Nutmeg Ltd Ginger can sell to her daughter for £4·00 per share during March 2013 without incurring any capital gains tax liability for the tax year 2012–13.

Note: Your answer should be supported by appropriate calculations. (4 marks)