Sample

Question 5ii

Patience was born on 31 December 1954. She retired on 31 December 2014, and on that date ceased employment and self-employment. The following information is available in respect of the tax year 2014–15:

Property
Patience owned two properties which were let out unfurnished until both properties were sold on 31 December 2014.

The following information is available in respect of the two properties:

Property one Property two
£ £
Rent received during the tax year 2014–15 3,600 7,200
Sale proceeds on 31 December 2014 122,000 98,000
Allowable revenue expenditure during the tax year 2014–15 (4,700) (2,600)
Purchase cost (81,400) (103,700)

Patience has never occupied either of the two properties as her main residence.

Patience is already a higher rate taxpayer.

Required:
Calculate Patience’s capital gains tax liabilities for the tax year 2014–15.

Notes:
The following mark allocation is provided as guidance for this question:

Capital gains tax   2 marks