Explain why the receipts in Egerton-Warburton & Ors v DFC of T (1934) 51 CLR 568 were assessable, but the receipts in IRC v Ramsay (1935) 1 All ER 847 were treated as capital amounts. Question 1 (10 Marks) Angelina is married to Bradley. They each have two houses: 'house A' and 'house B'. Angelina and Bradley each own a 50% interest in house A. Bradley owns an 80% interest in house B and Angelina owns a 20% interest in house B. As Angelina and Bradley are both busy actors who lead their own lives, they quite often live apart. This year the sold both house A and house B. Angelina wants to nominate house A as her main residence and Bradley wants to nominate house B as his main residence. Advise Angelina and Bradley as to how the main residence exemption will apply to them assuming that (ignoring the exemption) a capital gain of $1m was made on the sale of each house. REQUIRED: Advise Angelina and Bradley on the capital gains tax consequences regarding the abovementioned transactions for the 2014/2015 income year.