PTC Share Pool Calculations

Tinkerbell007

Hope someone can help!

I'm getting really confused about matching disposals of shares against acquisitions and then the share pool - I can't quite get my head round the matching of shares acquired in the following 30 days on a FIFO basis and the example in my book isn't very clear - can someone explain this in really straightforward terms for me?

Thanks!

Terdoo

Re PTC

is this suppose to be business tax or personal tax if so what book are you looking at?

Tinkerbell007

Hi Terdoo

It's personal tax and the book I have is the BPP one (page 92) - I can't see how they have got the figure of £27,733 for the disposal cost on 5th June 2009

noodles

if you post the question i will have a look as i am studying business tax too and it will help me.

taskey

Tinkerbell007 wrote: »

Hi Terdoo

It's personal tax and the book I have is the BPP one (page 92) - I can't see how they have got the figure of £27,733 for the disposal cost on 5th June 2009

i struggled on this and phoned bpp

the answer is after the acquisition you should have 15000 shares costing £32000

you divide the 32000 by 15000 the multiply by the (13000). this then gives you (27333)

i have used an applied this method tho the next few questions in the book and it works, i could not see it for the life of me either.

Tracy

Tinkerbell007

Hi Taskey

Thanks for the reply - going to re-look at it tonight so fingers crossed all should now all make sense!!

Hope your revision is going well - not long to go now!!