Personal Tax - Share pool question on practice 2014

hayleygodden
hayleygodden Registered Posts: 1
in AAT Level 4 (Level 8 in Scotland)
can someone explain to me why the £8727 Disposal (part pooled) is added to the Cost element???










Comments

  • shamil91
    shamil91 Registered Posts: 94 Regular contributor ⭐
    Hi there,

    I have not yet had a chance to look at the question but I think this maybe due to the aquistions (sorry for my spelling), you need to remember the 3 aquistions which are :

    Aqusition on the same day meaning a disposal and purchase same day

    Aqusition in the next 30 days meaning a disposal has been made then a purchase within the next 30 days

    Aqusition in a pool

    I hope this has made it a bit clearer, if not I will try and provide you with a breakdown after

    Kind regards

    Shamil
  • KarenMustardTutor
    KarenMustardTutor Registered, Tutor Posts: 28
    Kyn is selling 800 shares on 12 November for £25600.

    Follow the matching rules
    a. Shares acquired same day
    b. Shares acquired following 30 days FIFO
    c. Shares from the Share Pool

    First match to the 400 shares he bought on 19 November (following 30 days) that is the cost of £12000.

    Then match to 400 shares from the pool. They have a cost of £8727.

    So overall
    Proceeds £25600
    Cost (£12000 + £8727)
    Gain £4873

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