(a) In November 2006, Yorick bought 6,000 ordinary shares in Togon plc for 30,000. In March 2018...
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(a) In November 2006, Yorick bought 6,000 ordinary shares in Togon plc for £30,000.
In March 2018 , the company went into liquidation and Yorick received a first distribution of £1 per share. The market value of an ordinary share in Togon plc just after this distribution was £2. Compute the allowable loss.
(b) In January 2010, Yolande bought 300 ordinary shares in Lippex plc at a cost of £1.20 per share. In May 2016, when shares in Lippex plc had a market value of £2 each, the company made a rights issue. Yolande sold her rights, realising £25.
Compute the chargeable gain arising i n November 2017 when Yolande sold all of her shares for £780, assuming that no further shares were acquired within the following 30 days.
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