[johncarter]

After tax proceeds are sale proceeds minus CGT
not
gain minus CGT

[johncarter]

@azramalik said:
The number of shares which I did not work out at the time due to time pressure which I have managed to work out now is 1041.68 shares x45 = 46876. Take off cost of purchase
1041.68 sharesx5=5208. This equals £41667. Take off CGT @28%=11667.
Net gain =£30,000

It did not ask for net gain.
It had asked for after tax proceeds.

[johncarter]

@adski989 said:
That looks wrong…. Take the proceeds less cost as you would any cgt, less 28% ignoring annual relief and you don’t get that answer.

If you used annual exemption then it shud be 796 shares

[johncarter]

@adski989 said:
That looks wrong…. Take the proceeds less cost as you would any cgt, less 28% ignoring annual relief and you don’t get that answer.

I think it said that A/E of 11000 is used up as he make cap gains. But i believe it is correct as few other ppl have same result.
Thanks for noticing it.

[johncarter]

Q4 part 1 the correct answer is 888 shares.

X= number of shares sold
sale proceeds = 45X
Cost = 5X
Gain = 40X
CGT @ 28% = 11.2X

Therefore

30000 = 45X – 11.2X
33.8X = 30000
X = 887.57 or 888 shares

[Author]

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