Capital immobility is generally not a problem in forestry.

A.money

B.check

C.capital

D.card

(c) (i) Calculate Benny’s capital gains tax liability for 2006/07. (6 marks)

A.Idle

B.capital

C.kind

D.child

(b) (i) Advise Andrew of the income tax (IT) and capital gains tax (CGT) reliefs available on his investment in

the ordinary share capital of Scalar Limited, together with any conditions which need to be satisfied.

Your answer should clearly identify any steps that should be taken by Andrew and the other investors

to obtain the maximum relief. (13 marks)

(c) (i) Compute Gloria’s capital gains tax liability for 2006/07 ignoring any claims or elections available to

reduce the liability. (3 marks)

(b) (i) State FOUR reasons why payback period is widely used by organisations in the capital investment

appraisal process. (2 marks)

A.village

B.vital

C.capital

D.visual

A.Statements I and III are correct

B.Only statement I is correct

C.Statements I, II and III are correct

D.Statements I, II, and IV are correct

E.Statements I, II, III, and IV are correct