Can somebody help me on Practice assement business tax FA2011 shares q2.3

lk01

The most frustrating thing is, that I did it a couple of weeks ago when I learned shares!

The answers arn't helping me because I learnt it by laying it out as:
No. of shares/Cost/Indexed

It's just the disposal that's getting me. 2,000 sold, and 1,500 acquired in previous nine days but I just can't get the answer!

Any help would be so gratefully appreciated!

Jo Clark

Hello lk

What is it that you don't get? I did this in class today. I'll go have a look at the question and see if I can do and will report back later tonight...


JC

lk01

How to take out the 1,500 shares that were acquired in the previous nine days, then the remaining 500 from the pool.
The balances i have up until the disposal are:

No of shares: 2900
Cost: 48300
Indexed cost: 54331

I can't subsequently work out the gain because i need the costs!

Thank you so much

Jo Clark

I'll go look now and see if I can remember what I learnt a few hours ago

lk01

Oh dear, i've done it, i feel so silly now!
For anyone else that wants to know..

You first take out the 1500 shares at a cost and indexed cost of 31500
Then the remaining out of the share pool 500/1400 x 16800 = 6000 to get cost, and 500/1400 x 22,831 = 8154 to get indexed cost

then proceeds 50,000
less allowable cost (31,500)
less indexed (8154)
= 10346


Jo could you please let me know if you calculated it any differently because it is slightly confusing me!