Personal Tax PTX exam 2012 shares question

tanyamarie
tanyamarie New MemberRegistered Posts: 5
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

Comments

  • omega man
    omega man Trusted Regular Registered Posts: 283
    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
    tanyamarie New Member Registered Posts: 5
    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
    omega man Trusted Regular Registered Posts: 283
    no you simply have bought 800 more than you have sold at £6 which =4800
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