Tx notes fa22 Final

Calculate the chargeable gain arising on the sale of the Branch Limited shares in October 2022 
Indexation factors are as follows: 
July 1994 to February 1996
0.048 
February 1996 to September 1997
0.061 
February 1996 to October 1998
0.090 
September 1997 to October 1998
0.023 
October 1998 to December 2017
0.703
23. Mighty Ltd 
Mighty Ltd has been o
ff
ered £160,000 for a freehold factory that it owns, and is now considering 
disposing of the factory. The company acquired the factory on 15 March 1984 and it now has an 
indexed cost of £120,000. The factory has always been used by Mighty Ltd for business purposes.
Explain the chargeable gains implications of each of the following alternative courses of 
action that Mighty Ltd is considering taking to replace the factory if sold: 
(a)
Acquiring a larger freehold factory for £170,000.
(b)
Acquiring a smaller freehold factory for £155,000 and using the remainder of the proceeds as 
working capital.
(c)
Using the proceeds to pay a premium of £180,000 for a 40-year lease of a new factory (it is 
possible that a freehold warehouse will also be bought in the next two or three years for an 
estimated cost of £200,000).
24. Claude 
For 2022/23 Claude has made the following gains and capital losses:
๏
a gain of £31,000
๏
a gain of £24,000
๏
a capital loss of £7,000
๏
a capital loss brought forward of £10,000
All three assets were purchased during May 2020 and were sold during September 2022. None of 
the assets are residential property
Calculate the CGT in 2022/23 assuming his taxable income is £48,000 

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