Janet has two homes; one in London, the other in the South of France. The winter months are spent in France whilst the rest of the year is spent London.
Unfortunately, the French house has been damaged by fire. As a result of this Janet receives £100,000 from an insurance company. She is so upset b y the fire that she decides to sell the French house without repairing the fire damage. Nonetheless, it is likely that she makes a profit of £200,000; that is, a £100,000 gain on the property plus the £100,000 from the insurance company.
Janet also decides to sell her London house. Part of the very large garden is sold to a property development firm in order to construct flats. A servant’s flat with a separate entrance which has been rented out is also sold separately.
In clearing out her house she finds an old picture which she acquired for £100 some years ago. She gives the picture to her nephew, Jim who obtains a professional valuation of it at £100,000.
Advise Janet on the capital gains tax consequences of these transactions and whether there are any steps that she can take to reduce her liability.
The post Revenue/Tax Law appeared first on Varsity Term Papers.