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| Mr A purchased a house on 1 April 1987 for £88,200. He lived in the house until 30 June 1987. He then worked abroad for two years before returning to the UK to live in the house again on 1 July 1989. He stayed in the house until 31 December 2005 before retiring and moving out to live with friends in Spain until the house was sold on 31 December 2012 for £150,000. Required: Calculate the gain arising. |