24 John Harley

24 John Harley

(a) John Harley purchased a property in England on 1 August 1991 for £40,000 and lived in it until 31 May 1992 when he moved overseas to take up an offer of employment. He returned to the UK on 1 August 1996 and took employment in Scotland until 31 October 2002. During these periods he lived in rented accommodation. On 1 November 2002 he moved back into his own house until he moved out permanently on 30 June 2009. The house was then put up for sale and was finally sold on 30 November 2013 for £120,000. At all times when John was not in the house it remained empty.

24 John Harley

 

Required

Prepare a schedule of periods of exemption and non-exemption, together with the reasons where applicable.

(b) Elsie Phillips made the following disposals of assets during the tax year 2013/14.

July 2013

An oil painting for £5,000 (net of £400 commission). She had purchased this at a cost of £11,500.

February 2014

A crystal chandelier for £7,500. She had purchased this for £4,000.

Required

Calculate Elsie’s chargeable gains or allowable losses on these two transactions.

 

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