The following scenario relates to questions 6–10.Kitten is the controlling shareholder in

The following scenario relates to questions 6–10.

Kitten is the controlling shareholder in Kat Ltd, an unquoted trading company.

Kat Ltd

Kat Ltd sold a freehold factory on 31 May 2015 for ￡364,000, which resulted in a chargeable gain of ￡120,700. The factory was purchased on 1 October 2003 for ￡138,600, and further capital improvements were immediately made at a cost of ￡23,400 during the month of purchase. Further improvements to the factory were made during the month of disposal. The relevant retail prices indexes (RPIs) are as follows:

October 2003 182·6

May 2015 258·0

Kat Ltd is unsure how to reinvest the proceeds from the sale of the factory. The company is considering either purchasing a freehold warehouse for ￡272,000, or acquiring a leasehold office building on a 40-year lease for a premium of ￡370,000. If either reinvestment is made, it will take place on 30 September 2016.

All of the above buildings have been, or will be, used for the purposes of Kat Ltd’s trade.

Kitten K

itten sold 20,000 ￡1 ordinary shares in Kat Ltd on 5 October 2015, which resulted in a chargeable gain of ￡142,200. This disposal qualified for entrepreneurs’ relief.

Kitten had originally subscribed for 90,000 shares in Kat Ltd on 7 July 2008 at their par value. On 22 September 2011, Kat Ltd made a 2 for 3 rights issue. Kitten took up her allocation under the rights issue in full, paying ￡6·40 for each new share issued.

Kitten also sold an antique vase on 16 January 2016, which resulted in a chargeable gain of ￡27,900.

For the tax year 2015–16, Kitten had taxable income of ￡12,000.

What amount of indexation allowance will have been deducted in calculating the chargeable gain of ￡120,700 on the disposal of Kat Ltd’s factory？

A.￡47,304

B.￡40,471

C.￡66,906

D.￡57,242

If Kat Ltd decides to purchase the freehold warehouse and makes a claim to roll over the chargeable gain on the factory under the rollover relief rules, what will be the base cost of the warehouse for chargeable gains purposes？

A.￡243,300

B.￡272,000

C.￡180,000

D.￡151,300

What cost figure will have been used in calculating the chargeable gain on Kitten’s disposal of 20,000 ordinary shares in Kat Ltd？

A.￡12,000

B.￡63,200

C.￡84,800

D.￡20,000

If Kat Ltd decides to acquire the leasehold office building and makes a claim to hold over the chargeable gain on the factory under the rollover relief rules, what is the latest date by which the held-over gain will crystallise？

A.Ten years from 31 May 2015

B.The date when the office building is sold

C.40 years from 30 September 2016

D.Ten years from 30 September 2016

What is Kitten’s capital gains tax (CGT) liability for the tax year 2015–16？

A.￡17,244

B.￡22,032

C.￡20,053

D.￡18,924

请帮忙给出每个问题的正确答案和分析，谢谢！