Dec 2008 Hawk Limited Corporate Capital Gain on shares – identification of share

Dear Ema,
Thanks for your feedback. But it appears to me that you are not correct. The 30 day rule is applicabe to companies. Kindly see the ACCA article which says so.
https://www.accaglobal.com/ca/en/technical-activities/technical-resources-search/2014/december/share-matching-rules.html
Since I got confused and exam is nearing, I posted the doubt here.
Regards
Krishnan

The rules are as below. “What are the rules? The capital gains tax regime underwent a substantial revamp in 2008 and the share identification rules formed part of the reforms. The rules are therefore different for disposals occurring on or after 6 April 2008 than they were previously. This article just looks at the rules as they have applied since 6 April 2008.

Disposals of shares on or after 6 April 2008 are to be identified with acquisitions by the same person of shares of the same class in the same company in the following order:

acquisitions on the same day as the disposal;
acquisitions within 30 days after the day of disposal (thus countering ‘bed and breakfasting’);
shares comprised in the ‘section 104 holding’ (see below);
if the shares disposed of are still not exhausted, shares acquired subsequent to the disposal (and beyond the above-mentioned 30-day period).

Thanks a lot for joining the discussion. Kaplan should be right.

Page 118 of Open tuition note says as below and it matches with Kaplan. It seems we can ignore the ACCA article, because OT note is updated for Dec’15 exam.

“3 Share matching rules for companies
Disposal of shares gives rise to a chargeable gain or allowable loss. It is difcult however to identify which shares are being sold,
and therefore establish the cost of those shares sold where it is only some of the shareholding being sold and the shares had been
acquired over a period of time at diferent costs. We need to identify the shares sold by using matching rules as laid down by HMRC
which, as you may expect, are not exactly the same as the matching rules that we used when dealing with the same problem for
individuals disposing of shares as we saw back in Chapter 13. Thus the shares sold are deemed disposed of in the following order::
t shares acquired on same day
t shares acquired in previous 9 days
t shares contained within the share pool which is made up of any shares acquired more than 9 days previous.
The share pool records the number and cost of shares for each acquisition and disposal as it did for individuals but also has to deal
with the fact that companies are entitled to indexation allowance. Thus whenever shares are purchased or sold a reindexation of
the indexed cost of the shares in the pool is added to the indexed cost total which is recorded in a separate Indexed Cost column
of the share pool. Follow the answer to example 2 below to see how the share pool is constructed”

Thank you so much for the assurance.