FA 85 Pool - for PTC

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Can anyone tell me whether when calculating the indexation in the FA 85 Pool and there is a bonus issue, whether you should calculate the indexation up to the bonus issue, or whether you should ignore it and do the indexation from the previous purchase to the next one that has a cost? Hope that makes sense. I think the answer is the second option as a bonus issue is not an operative event but I am not completely sure.<BR><BR>Cheers to anyone that can help

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    FA 85 Pool - for PTC

    if it's a bonus issue, don't index up to it, if it's a rights issue then do.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FA 85 Pool - for PTC

    Thanks for that. Good luck to anyone tomorrow sitting PTC
  • System
    System Posts: 100,534 🤖 Admin 🤖
    FA 85 Pool - for PTC

    The reason for indexing the 85 pool twice is as follows:<BR><BR>Prior to the Budget in 1985 indexation was based upon the RPI, from March 82, and rounded to 3 figures. Post Budget 85 you were required to index the pool at each operarive event and it was felt that if there was rounding each time then an inaccuracy would develop so, post 85, indexation is not rounded.<BR><BR>Index up to April 85 with rounding, then no rounding, until 1998.<BR><BR>There is another theory about this which has some currency within the CIOT, that the legislation draters forgot to put the words 'round to 3 figures' in and then, to save, face came up with the first reasons.

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