A company makes the following acquisitions of ordinary shares in JKL plc:

The company sells 500 shares on 8 July 2020.

(a) Calculate the cost and indexed cost of the s104 holding on 8 July 2020, just prior to and just after the above disposal. (RPI for April 1985 is 94.78 and RPI for December 2017 is 278.1).

(b) Compute the chargeable gain or allowable loss on the disposal if sale proceeds are:

(i) £2,800 

(ii) £1,000 

(iii) £700

Transcribed Image Text:

Date 1 July 1983 2 August 1984 3 February 1997 4 June 2003 No of shares 5,000 2,000 1,200 1,800 Cost 6,300 2,500 2,300 3,400 RPI 85.30 89.94 155.0 181.3