Personal Tax

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Hello is there anyone out there taking personal tax in the next few weeks? I am doing a retake and would appreciate some help on CGT.
:roll:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    I passed it in June but my memory is awful! What exactly are you struggling with?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    Mainly share matching. I managed to conquer the 1985 pool pretty well at the weekend but Rights issues are confusing me badly!!!!
    I understand that you treat them as though they were bought with original shares but do you just add them into the pool? :oops:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    Hmmm unfortunately I gave my books to a work colleague so I'm not 100%. They definately go into the pool I know that much.

    I remember I messed up the Pool last year, including shares in there that shouldn't have been. Also DIDN'T treat an item as wasting chattle or include the allowance but still passed! I'm not encouraging you to do the same but don't worry if once you've sat it you realise you made mistakes. They seem to be quite fair with the marking.

    Sorry I couldn't help!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    Hi

    The rights issue shares do go into the pool and are treated like they were bought at the same time as the original shares.

    Also don't froget to index cost them.

    Good luck

    Ruth
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Personal Tax

    Rights issues based on holdings of shares in the pool go into the pool but for indexation purposes they are treated as from the date of the issue. Thus if the RI was after April 1998 they don't get indexed.

    Take a look at the June 2006 PTC past paper, there's a question (2.1) on shares with a rights issue, the answer to this should help you see how it works.

    http://www.aat.org.uk/other_files/pep/Technician/PTC%20-%20questions.pdf
    http://www.aat.org.uk/other_files/pep/Technician/PTC%20-%20answers.pdf

    Chris

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