Dear Sir, In the answer at the back, note 3, where the advise was to elect to dis-apply incorporation relief, it was said that the base cost of the shares would then be 200,000. How this figure was calculated? Was it the ordinary shares valued at 160,000 + the 40,000 cash or was it the total of the market values at 1/9/12?
Hi bona007 many thanks for asking this question as the answer should not say 200,000 but it should be 160,000 being the value of the shares issued / base cost of the shares without the reduction for incorporation relief!! Hope that now makes more sense and again many thanks for bringing the error to my attention!