36 Jenny owned a set of two antiques which cost her £4,000 in January 1 990.

In September 2023, she sold one of the antiques to Helen for £7,000. The other antique was valued at £8,000 at this time.
In October 2023, she sold the other antique to Helen's wife, Shona, for £10,000.
Helen and Shona are connected persons for CGT purposes.
Requirement
What is the cost to be used in the calculation of Jenny's gain on disposal to Shona in October 2023?
A £4,000
B £2,133
C £2,000
D £1,867
LO4b

37 Tiny owned a set of two sparkly antiques which they sold to Deborah as follows:

Antique 1 Antique 2 Total

Date of sale 1 July 2023 1 November 2023

Sales proceeds £5,100 £3,200 £8,300

Gain calculated using part disposal formula to £3,100 £1,400 £4,500

determine cost

Requirement
What is the chargeable gain o n the disposal of Antique 1 ?
A £3,833
B £3,100
C £2,355
D £1,917
LO 4b

38 In February 2005 Nuria purchased a painting for £6,700. She sold it at auction for £4,600 after deducting £200 of
auctioneer's fees in October 2023.

Requirement
What is the allowable loss on disposal?
A £(2,300)
B £(2,100)
C £(700)
D £(900)
LO 4b
39 O n 1 December 2023 Claire sold a painting for £50,500 which she had bought, unframed, from the artist for £8,000 in
2003, She had paid £1,300 to have the painting framed before sale.
Claire made no other disposals of chargeable assets during 2023/24. She had taxable income of £34,700 in 2023/24 after
deduction of her personal allowance.
Requirement
What is Claire's capital gains tax liability for 2023/24?
A £7,040
B £7,940
C £7,000
D £6,740
LO 4d

40 Which of the following statements is correct?

A For individuals and companies there is an annual exempt amount available to reduce the amount of gains taxable
each year.
B A gain made by an individual on the sale of a vintage car at auction will be liable to capital gains tax.
C Capital gains tax is payable by individuals and companies on their taxable gains.
D Individuals will have a chargeable gain on disposal of goodwill from their business.
LO 1d, 4b

41 Justin entered into a contract with Matthew to purchase a rare art collection. Contracts were exchanged on 1 August 2023
subject to an independent valuation being done. The valuation took place on 1 September 2023. Legal title finally passed
on 5 September 2023. Payment was not made until 7 September 2023.
Requirement
On what date will Matthew be treated as having disposed of the art collection for capital gains tax purposes?
A 1 August 2023
B 1 September 2023
C 5 September 2023
D 7 September 2023
LO 1e
1 0 Corporation tax

1 In January 2019, Sink Ltd purchased a property for £250,000. In June 201 9 Sink Ltd built an extension to the property
costing £20,000, however this was subsequently demolished in 2020 and replaced with a larger extension costing
£35,000. In September 2023 Sink Ltd sold the property.

Requirement
What is the total allowable cost of the factory in computing Sink Ltd's chargeable gain?
A £250,000
B £270,000
C £285,000
D £305,000
LO 4b

2 Pineapple pic sold an antique writing desk which had been purchased in January 201 8 for £1 8,000. It was sold for £3,200
in January 2024. The proceeds were received net of selling fees of £400.
Requirement
What is Pineapple pic's allowable loss?
A £0
B £(12,400)
C £(1 5,200)
D £(12,000)
LO 4b

3 Shower pic has made two disposals in its year ended 31 August 2023.
For each of the two disposals select how the resulting gains should be treated in the calculation of Shower pic's
chargeable gains.
Requirements
Gain of £24,000 o n the disposal of a rare African snake which had not been used in the business.
A Chargeable gain
B Exempt
Gain of £1,100 o n the sale of an antique chair. The chair originally cost £5,000.
C Chargeable gain
D Exempt
LO4a
4 Pumpkin Ltd purchased a p l o t of land in August 201 8 for £60,000, incurring legal fees of £3,000 o n acquisition. Work to
improve drainage was carried out o n the land in 2019 at a cost of £25,000. The company sold the land in November 2023
for proceeds of £80,000, incurring selling costs of £1,750.
Requirement
What is the chargeable gain or allowable loss o n the disposal?
A (£9,750)
B £15,250
C £(8,000)
D £(6,750)
LO 4b

5 Party Ltd purchased a building for investment purposes i n January 201 8 for £150,000. The property was redecorated at a
cost of £24,000 and the single glazed windows were replaced with double glazing costing £40,000 i n December 2018.
The company sold the building in September 2023 for £425,000.

Requirement
What is the gain in Party Ltd's corporation tax computation for the year e n d e d 31 December 2023?
A £275,000
B £211,000
C £251,000
D £235,000
LO 4b

6 Tractor Ltd realised a chargeable gain of £16,000 o n disposal of a building in January 2024. Tractor Ltd has augmented
profits below the lower limit
Requirement
What is the tax suffered by Tractor Ltd o n its chargeable gain?
A £1,000
B £1,900
C £3,040
D £3,200
LO 4c

7 Lettuce Ltd was incorporated o n 1 1 May 2023. It opened an inte re st-bearing building society account o n 1 July 2023 and
began trading o n 1 January 2024. It will make u p its first set of accounts to 30 September 2024 and annually thereafter.

Requirement
What are the dates of Lettuce Ltd's first accounting period for corporation tax purposes?
A 1 1 May 2 0 2 3 - 3 1 December 2023
B 1 July 2023 - 31 December 2023
C 1 January 2024 - 30 September 2024
D 1 January 2024 - 31 December 2024
LO 5a
 8 Which of the following statements about corporation tax is true?
A A company which is centrally managed and controlled in the UK will always be liable to UK corporation tax o n its
worldwide profits.
B A company which is incorporated i n the UK will only be liable to UK corporation tax o n its worldwide profits if it is also
centrally managed and controlled in the UK.
C A company which is incorporated abroad and centrally managed a n d controlled abroad, will still be liable to UK
corporation tax o n its worldwide profits.
D A company which is incorporated abroad will never be liable to UK corporation tax o n its worldwide profits.
LO5d

9 Airedale Ltd was incorporated o n 1 1 June 2023. It opened an interest- be aring building society account o n 1 August 2023
and began trading o n 1 February 2024. It makes u p its first set of accounts to 30 September 2024 and annually thereafter.
Requirement
What are the dates of Airedale Ltd's first accounting period for corporation tax purposes?
A 1 August 2023 - 31 July 2024
B 1 1 June 2023 - 31 January 2024
C 1 February 2024 - 3 0 September 2024
D 1 August 2023 - 31 January 2024
LO 5a

1 0 Papillon Ltd has taxable total profits of £1 50,000 for its three-month accounting period to 31 December 2023. Papill o n Ltd
d i d not receive any dividends, and has n o associated companies.

Requirement
What is Papillon Ltd's corporation tax liability for the three months ended 31 December 2023?

Papillon Ltd's corporation tax liability £

LO5d

1 1 Jaffrey Ltd is a UK-resident trading company that made various disposals during the year e n d e d 31 March 2024.
Select how the resulting gains o r losses should b e treated in the corporation tax computation of Jaffrey Ltd for the year
e n d e d 31 March 2024.

Requirements
Loss of £5,900 o n the sale of two cars used in the business; each car cost and was sold for more than £6,000:
A Chargeable gain
B Exempt
C Allowable capital loss
Gain of £86,000 o n the sale of an investment property:
D Chargeable gain
E Exempt
F Allowable capital loss
LO4a