CAPITAL GAINS-SOPHIA WONG

Sophia Wong
This scenario relates to two requirements.
Since receiving your advice in (a) above Sophia has unexpectedly received a very generous offer to buy her business. This coincided with discussions she has been having with a major law firm who are interested in employing her.
She has therefore now decided not to incorporate her business but instead to sell it to an unconnected third party for £200,000, to be received in cash on 1 May 2021. The only chargeable asset of Sophia Wong’s business is goodwill, the value of this asset has increased over a number of years to £150,000. The goodwill has a nil cost.
On 15 April 2021 Sophia sold a necklace realising a chargeable gain of £12,353.
Sophia will not make any other disposals during the tax year 2021/22. She will take a
long holiday before starting her new job and her taxable income (after deduction of
the personal allowance) for the tax year 2021/22 will be £20,000.
Required:
(1) Calculate Sophia Wong’s capital gains tax liability for the tax year 2021/22
assuming she sells her business on 1 May 2021 for £200,000 cash and she
makes any beneficial elections. ?

Capital gains tax liability – 2021/22
Not qualifying
for BADR Qualifying
for BADR
£ £
Qualifying for BADR (Note 1)
Sale of business: Goodwill (£150,000 – £0) 150,000
Not qualifying for BADR
Necklace 12,353

Good day,please i don’t understand why the sale proceed on 200000 was not used in the calculation of chargeable gains for the sale of the business and why 150000 was used instead.I’ll appreciate if you can explain better.Thank you