Michel Theroux purchased a property in England on 1 August 1988 for £40,000 and lived in it until 31 May 1990 when he moved overseas to take up an offer of employment. He returned to the UK on 1 August 1993 and took employment in Scotland until 31 October 1998. During these periods he lived in rented accommodation. On 1 November 1998 he moved back into his own house until he moved out permanently on 30 June 2002. The house was then put up for sale and was finally sold on 30 November 2011 for £120,000. At all times when Michel was not in the house it remained empty.
Required:
- Prepare a schedule of periods of exemption and non-exemption, together with the reasons where applicable.
- Michel also made the following disposals of assets during the tax year 2011/12.
- 2 June 2011
- An oil painting for £7,000 less a £400 commission charge. He had purchased this at a cost of £11,500.
- 31 August 2011
- Part of a plot of land. The proceeds of sale were £42,000. The costs of disposal were £800. The original cost of the land was £58,000. The remainder of the land is worth £92,000.
- 1 February 2012
- An antique table for £3,000 that he had purchased this for £4,000 several years earlier, he incurred commission fees of £300 during the sale.
Required:
Calculate Michel's chargeable gains or allowable losses on these transactions.