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Chapter 19 – Chargeable Gains – Companies – ACCA Taxation (TX-UK) lectures

19.1 Introduction to the taxation of chargeable gains for companies [43m]

19.2 Disposal of shares by companies  [50m]

19.3 Takeovers [58m]

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Comments

  1. I agree with Cmljames. When we deduct original costs twice in 19.1, it appears to be an error. First, in their original amount, and then in their total amount, which includes both original and indexed parts.

    • No. I apologize. It was my fault. They are right. The index factor in 19.1 is 40k, which does not include the original cost of 26 K. I didn’t realize the UK had such high inflation. But maybe it would be better to mention that indexation factors only include the inflation effect and do not include the original cost.

  2. Why is it when calculating the Indexation Allowance for the share pool, you subtract the indexed cost from the cost. However on the other examples the indexed allowance was the index factor x original cost?

      • I have the same question. In example 1, we subtract the total cost of 26k and afterwards we subtract again the index. allowance of 26k times the index factor = 40k. If we follow the share pool example shouldn’t it be 40k-26k as index allowance?

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