BTX - shares question

topcat

Hello All,

Can not understand what i am doing wrong here can anyone help me please

Lucy_M

Hi,
Long time since I've been on here, how's it going? I can't see why your answers are wrong, that's what I get. Took BTax yesterday so fairly confident as this seems a pretty basic one...
How many have you left now? Lucy x

topcat

Lucy_M wrote: »

Hi,
Long time since I've been on here, how's it going? I can't see why your answers are wrong, that's what I get. Took BTax yesterday so fairly confident as this seems a pretty basic one...
How many have you left now? Lucy x

Hi Lucy !!

good to see your still about thought you had legged it :001_tongue:

Thank you glad i am not missing anything obvious

Its going well thanks how are things with you? Just had ptx which didn't go to great (but might make it by an inch) and now got this one next bit overloaded doing them this close together so will posting quite a few questions over next 6 days in pure desperation i guess lol

You nearly finished up and on the route to freedom ?

Nps

It's been a while since I did Tax so testing my memory here. Should the first answer be £225 loss?

Nps

And is part b a 11195 gain? As I say, it's been a while since I did tax, but when I did, the rules for matching disposals to purchases was to match disposals to any purchases made in the following 30 days. Assuming the legislation hasn't changed since then, your 12 Dec sale should be matched against the 2 Jan purchase. Your answer in part a of a £300 gain suggests that you have matched the disposal to the existing share pool not the future purchase.

topcat

Nps wrote: »

And is part b a 11195 gain? As I say, it's been a while since I did tax, but when I did, the rules for matching disposals to purchases was to match disposals to any purchases made in the following 30 days. Assuming the legislation hasn't changed since then, your 12 Dec sale should be matched against the 2 Jan purchase. Your answer in part a of a £300 gain suggests that you have matched the disposal to the existing share pool not the future purchase.

In my book the matching rules are:

1) First shares bought on the same day , then

2) Second with shares bought in the previous 9 days (FIFO)

3) Share pool


But i think i remembering the tutor saying these are the old rules but are used in the exam where as for PTX the 2nd rule as you say is the following 30 days

Thank you for your help as always

Makkusu

Yes, shares are matched with those sold on the same day or within 30. Research bed and breakfasting rules via HMRC website.

This would change the calculation significantly, always look out for close periods in the exam as it's a good clue they require you to do something different.

Lucy_M

Yes, of course, can't believe I missed it! The rules are different for companys and sole traders; you've written out the company rules, sole traders are 30 days. Watch this one as there was a trick bit in the exam

And yes, nearly done!! You? x