Shares Quoted rate

Hello All,

Trust you are good?

Kindly help with the question below. The challenging part is in the last part, shareholding in Aplo Plc. The question says shareholding was quoted at £2.12-£2.24. I calculated share at the rate of £2.18 (£2.12 + £2.24 divided by 2). Whereas, the solution to the question use rate at £2.15(£2.12+1/4(£2.24-£2.12).

Could you please explain why it was done that way.

Thank you for your time.

You should assume that today’s date is 1 March 2015.
(a) On 27 August 2014, Ruby disposed of an investment property, and this resulted in a chargeable gain of £45,800.
For the tax year 2014–15, Ruby has taxable income of £17,600.
Required:
Calculate Ruby’s capital gains tax liability for the tax year 2014–15 if this is her only disposal in that tax
year. (2 marks)
(b) In addition to the disposal already made on 27 August 2014, Ruby is going to make one further disposal during the tax year 2014–15. This disposal will be of either Ruby’s holding of £1 ordinary shares in Pola Ltd, or her holding of 50p ordinary shares in Aplo plc.

Shareholding in Pola Ltd
Pola Ltd is an unquoted trading company, in which Ruby has a 10% shareholding. The shareholding was purchased on 14 July 2007 for £23,700 and could be sold for £61,000. Ruby has been an employee of Pola Ltd since 2005.

Shareholding in Aplo plc
Aplo plc is a quoted trading company, in which Ruby has a shareholding of 40,000 50p ordinary shares. Ruby received the shareholding as a gift from her father on 27 May 2010. On that date, the shares were quoted on the stock exchange at £2·12–£2·24. There were no recorded bargains on that date. The shareholding could be sold for £59,000.
Neither entrepreneurs’ relief nor holdover relief is available in respect of this disposal.

Required:
Calculate Ruby’s revised capital gains tax liability for the tax year 2014–15 if, during March 2015, she also disposes of either (1) her shareholding in Pola Ltd; or alternatively (2) her shareholding in Aplo plc.