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Question 3b i
Pescara requires advice on the capital gains tax due on a disposal of shares, together with the relief available in respect of the purchase of enterprise investment scheme shares.
Pescara’s actual and intended capital transactions in the tax year 2013/14:
| £ | |||
|---|---|---|---|
| 15 November 2013 | Sale | 1,000,000 shares in Zolder plc | 445,000 |
| 1 April 2014 | Purchase | Qualifying enterprise investment scheme (EIS) shares | 50,000 |
Note: The cost for the shares sold on 15 November 2013 is £269,565
Required:
(b) (i) Calculate Pescara’s capital gains tax liability for the tax year 2013/14 on the assumption that enterprise investment scheme (EIS) relief is claimed in respect of the shares to be purchased on 1 April 2014 and that entrepreneurs’ relief is not available. (6 marks)