(ii) Assuming the relief in (i) is available, advise Sharon on the maximum amount of cash

(ii) Assuming the relief in (i) is available, advise Sharon on the maximum amount of cash she could receive

on incorporation, without triggering a capital gains tax (CGT) liability. (3 marks)

(ii) As Sharon is entitled to the full rate of business asset taper relief, any gain will be reduced by 75%. The position ismaximised where the chargeable gain equals Sharon’s unused capital gains tax annual exemption of ￡8,500. Thus,before taper relief,