AAT online test paper 1 question 1.11 (Personal Tax mock)

BradleyClaridgeBradleyClaridge Registered Posts: 30
Hello

I'm stuck on this question, I have got 3 out of the 4 right but for working out Donna I'm stuck.
I have been reading the text book I have and it says that if the person is a connected person then the sales proceeds are deemed to be at the market value.
Donna is selling her item to her brother.
The proceeds are £19,000, the market value is £22,000 and the cost is £7,500, the other taxable income is £30,000 making her a basic rate tax payer.
The answer they have given is £480.00
Any ideas how they got that figure?

Thank you
Bradley
I'm currently studying AAT Level 4! as part of my Finance Apprenticeship
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