Sophia Tang, aged 78, has been in business as a sole trader since 1 April 1986. On 31 March 2007 she transferred the business to her daughter Wong at which time the following assets were sold to Wong:

• A free hold shop with a market value of £260,000. The shop had been purchased on 1 July 2002 for £113,000 and has never been used by Sophia for business purposes. Wong paid Sophia £160,000 for the shop.
• A freehold warehouse with market value of £225,000. The warehouse had been purchased on April 1986 for £70,000 and has never been used
by Sophia £100,000 for the warehouse. The indexation allowance from April 1986 to April 1998 is £50,100, and from April 1986 to March 2007 is £116,099.

Where possible, Sophia and Wong have elected to hold over any gains arising Sophia is a 40% tax payer She made no other capital disposals in the tax year 2006/07

Question:
• Calculate Sophias's capital gains stock for the tax year 2006/07
o Explain why it would have been beneficial for capital gains stock purposes if Sophia had postponed the transfer of her business until 6 April 2007.
o Explain the capital gains tax implications if Sophia had retained the business until her death, with the assets then passing to Wong under the terms of Sophia's will.