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Indexation allowance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Indexation allowance

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Tax Tutor.
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  • Author
    Posts
  • November 8, 2019 at 7:33 pm #551854
    sahinis94
    Participant
    • Topics: 2
    • Replies: 2
    • ☆

    How do you work out the cost figure on the disposal of shares if there is indexation?

    The company held 16,000 for a cost of £32,000 and disposed of 10,000 shares for proceeds of £26,000 but in the answer the cost is £24,808 which is obviously calculated somehow with indexation allowance. Could you please help me figure out how to get to this figure?
    Indexation factors are: 0.244 or 0.283.
    Practise Question on Practise and revision kit on BPP book 2019/20 if this helps.

    Thank you in advance.

    November 11, 2019 at 11:03 am #552022
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    I do not have the BPP kit but the main question here is have you studied chapter 19 of the OT notes and worked through the accompanying lectures??

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