Personal Tax PTX exam 2012 shares question

tanyamarie

Could someone please advise the answer for the following question. As i am completly lost
thank you so much


Bought 2000 shares £4 each 31 oct 2006.
1 June 07 Bonus shares 1/20
sold 1200 for £10 per share 28/01/12
then bought 2000 shares £6 each 20/02/12

I put


2000 8000
100 0

---

---

3100 8000
(1000) 2581

remaining 2100

proceeds 100 x£10 = £12000
less (2581)

gain 9419

omega man

Hi tanyamarie
I am studying personal tax for 2012/13, but i will try and answer this one.
I would have put
2000 8000
100 0

---

---

2100 8000
800 4800 (matching rules)

---

---

2900 12800

proceeds 1200x10=12000
less 1200x6=7200

Gain 4800

tanyamarie

Thanks. I see where I have gone wrong at the beginning. Where you have put 4800. Would this not be 8000x 800 divided by 2100 = 3048 ? Sorry if I have confused things.

omega man

no you simply have bought 800 more than you have sold at £6 which =4800