The FA 2018 lecture is used here, the differences between the FA2018 Study Notes used in the lectures and those you are using for FA 2019 are as follows:
Example 2 – the disposal date is changed from 10.3.19 in the lecture to 10.12.20 in FA 2019 Notes and the acquisition dated 7.3.19 is changed to 7.12.20
Example 3 – the date of the asset sale is 2 years later in the FA 2019 Study Notes
Hello,
Please can someone tell me why in example 3 the proceed is 12 000 rather than 2000/4000*12000= 6000?
Thank you
Good morning Sir,
how come in Example 2 the original cost are removed from the indexation allowance but not in Example 1. It looks like in Example 1 they are subtracted twice?
Many thanks!
Hey,
I thought the same thing at first, however I believe it boils down to the fact that the Indexation allowance in the Share Pool column already includes the original cost. Therefore the cost element needs to be removed as this is already deduction against the proceeds to derived the Unidexed Gain. We saw in Example 1 that this process was done in two seperate steps so no removal needed.
This is how i understood it anyway, hope it helps?