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Hi Sir
Please Sir I don’t understand why on purchase of 500 shares of 20th February, there is not indexation as
164.5-150.9
—————– X 16479. before bonus. I know it is the same amount but I I want to if the
150.9
indexation amount is for the bonus issued if yes why the purchased of 500 shares has not indexation?Indexation allowance IS applied on the purchase of shares is February 1996! There is no indexation on the bonus issue as no cost is incurred! Have you worked through the OT course notes chapter on this, where it is clearly stated that we do not index on a bonus issue!
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