[Emily]

AE already used up & in 28% band, so 30,000 will represent proceeds after 28% CGT deducted

45x-((45-5)x*28%) = 30,000
45 – (40*28%) = 30,000/x
x = 30,000/45 – (40*28%)
x = 888 shares

CHECK:
888*£45 = £39,960 Proceeds
£888 * (£45-£5) = £35,520 Gain
£35,520 * 28% = £9,946 CGT
£39,960 – £9,946 = £30,014 Net Proceeds after CGT

I can’t remember the exact amounts in the exam so I’ve used £45 as the sales proceeds and £5 as the cost just to provisionally show the formula I used.

[Author]

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