Loss on Shares

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Did anyone else get a loss on the third set of shares? I didn't know how to work these out. I didn't know whether you had to match the first 120 to the rights issue then the rest of the 5000 to the normal shares. <BR>I found this paper overall very confusing.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    Yes I also got a loss. Used the 120 form the right issues and the 4880 from the other lot. Had a loss of about £3500 for this. The other 2 were gains. In the end had a chargable gain of just over £1k?? So about £100 tax
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    Oh thank thank you, thats exactly what I got!!! Hopefully that is right but if not at least I know I'm not the only one who didn't understand the question x
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    Yes I think this is right. I had to keep looking at this because I wasn't expecting a loss. <BR><BR>But if you just did a rough calculation of the cost of the original shares and the cost of the rights issue it was about 3500 higher than the proceeds on sale. So I guess the loss - I got 34XX was about right.<BR><BR>Overall I got 1000 for gains (I rounded everything to the nearest pound) after annual exemption and because there was no income tax you can charge the 1st 1960 of CG at 10%, so the amount of CGT to pay I got to be 100.<BR><BR>Hope this was correct, from what other seem to be writing it looks about right.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    I left the exam today thinking I had failed miserably but now I don't think I have! Thought it was a bit strange to have no tax due on the income and such a small amount on the CGT. And we didn't even have to use the higher tax band!<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    I think they were examining if people would carry over what was remaining of the personal allowance and use it against the CGT. <BR><BR>Also testing if people realised that the first 1960 if not used on income tax can be used to reduce the rate of CGT to 10%<BR><BR>It was a bit tricky really <BR><BR>But I too was looking out for the 40% rate. It became even more suspicious because (I think) if you didn't take off from salary the 6% pension contribution you may have been left with a small amount in the higher bracket.<BR><BR>I too came out confused and feeling I may not have done as well as I first thought, but some of the other posts seem to suggest I may have done ok, hope you have too.<BR><BR>If there is big confusion and I think there will be because of the wording of several questions, this will be taken into account by the examiners, which is also good news<BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    I had a loss on the third set of shares and used the rights issue first then the rest.<BR>I offset the loss against the gain made on B Ltd as it was 95% chargeable.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    i thought the whole point of the rights issue is it becomes part of the shares that you have IE if you have 1000 shares in jan 2000 and a rights issue in 2002 the rights issue is added to the jan 2000 shares to give a total. they are not treated sepaeratly????
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    Thats what i thought too - I thought that you had to create a 'mini pool' if rights involved. I did this and used 5000? out of the total ( i think - cant really remenber exactly now!).<BR><BR>All over now! Phew.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    I did same - deducted from total (I think this question was in one of the past exam papers), and also had a loss on the 3rd set of shares. Most people seem to have the same sort of answers even if it was confusing. So hope it will be OK. At least its over. Does anyone know when the results are due?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    Yes, I found this year's paper very confusing. I made really mass in the last part of the paper, where they ask for CGT. First I got Nil Tax on Incomr tax but later I don't know why I add both Incomes togeather, Oh i am so upset now.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Loss on Shares

    Results will be out around the third week of Feb, well done everyone we all make mistakes! This was a resit for me, it was better than the June paper, it had principal private residence allowance as the main question in section 2 which had not been covered by the college. Good luck for the rest of the course tax definitely the hardest part.

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