On 9 May 2008, Steven bought 2,000 ordinary shares in Vexacon plc for 8,000. On 28 November
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On 9 May 2008, Steven bought 2,000 ordinary shares in Vexacon plc for £8,000. On 28 November 2013, he bought 500 ordinary shares in the company for £2,500.
In March 2018, Danstreet plc made a takeover bid for Vexacon plc. The shareholders of Vexacon were offered two shares in Danstreet plus £2 in cash for every Vexacon share. This offer was accepted on 21 March 2018 when the market value of shares in Danstreet plc was £4 per share. Compute Steven's chargeable gain or allowable loss.
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In order to compute Stevens chargeable gain or allowable loss we first need to calculate his cost ba...View the full answer
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