Charlotte purchased a house on 1st January 2005 for £150,000 and lived in it until 31st December 2010. She then worked abroad for 2 years before returning to the UK to live again in the house on 1st January 2013. Charlotte then lived in the house until 31st December 2016. On 1st January 2017 she embarked on a 12 month world tour before returning to the UK on 31st December 2017, when she retired and moved to a new house elsewhere in the UK, leaving the original house empty. She sold the first house for £246,000 on 31st December 2020. Calculate Charlotte’s chargeable gain on the house.
Charlotte purchased a house on 1st January 2005 for £150,000 and lived in it until 31st December 2010. She then worked abroad for 2 years before returning to the UK to live again in the house on 1st January 2013. Charlotte then lived in the house until 31st December 2016. On 1st January 2017 she embarked on a 12 month world tour before returning to the UK on 31st December 2017, when she retired and moved to a new house elsewhere in the UK, leaving the original house empty. She sold the first house for £246,000 on 31st December 2020. Calculate Charlotte’s chargeable gain on the house.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Charlotte purchased a house on 1st January 2005 for £150,000 and lived in it until 31st December 2010. She then worked abroad for 2 years before returning to the UK to live again in the house on 1st January 2013. Charlotte then lived in the house until 31st December 2016. On 1st January 2017 she embarked on a 12 month world tour before returning to the UK on 31st December 2017, when she retired and moved to a new house elsewhere in the UK, leaving the original house empty. She sold the first house for £246,000 on 31st December 2020. Calculate Charlotte’s chargeable gain on the house.
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