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shares and securities

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › shares and securities

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by JillyB.
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  • Author
    Posts
  • February 18, 2023 at 5:35 pm #679109
    advus
    Participant
    • Topics: 18
    • Replies: 19
    • ☆

    Dear tutor:
    Nim disposed of the following assets during the tax year 2021/22:
    (1) On 20 July 2021 Nim made a gift of 10,000 £1 ordinary shares in Kapook plc to his daughter. On that date the shares were quoted on the stock exchange at £3.70-£3.80.Nimhas made the following purchases of shares in Kapook plc:
    ?19 February 2004:8,000 shares for £16,200
    ?6 June 2009:1 for 2 rights issue at £3.65 per share
    ?24 July 2021:2,000 shares for £5,800
    Nim’s total shareholding was less than 5% of Kapook plc, and so holdover relief is not available.
    (2) On 13 August 2021 Nim transferred his entire shareholding of 5,000 £1 ordinary shares in Jooba Ltd, an unguoted companu, to his wife. On that date the shares were valued at£28,200. Nim’s shareholding had been purchased on 11 January 2010 for £16,000.
    (3) On 26 November 2021 Nim sold an antique table for net proceeds of £8,700 after deducting the sale costs of £300. The antique table had been purchased for £5,200.
    135 What is the total cost of the shares in Kapook ple sold on 20 July 2021?£26,333
    £28,500
    £25,667
    £20,533
    I calculate that the answer is 30800/12000*10000=25667,but it is fault,why?

    February 20, 2023 at 9:59 am #679204
    JillyB
    Moderator
    • Topics: 0
    • Replies: 275
    • ☆☆☆

    You need to read the chapter on CGT – shares for individuals and watch the recorded lecture. This explains about the matching rules and share pools. Watch/read and try the question again.

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