In April 2019, Vanessa bought 1,000 shares in Entagon plc at a cost of 5 per share.
Question:
In April 2019, Vanessa bought 1,000 shares in Entagon plc at a cost of £5 per share. The company went into liquidation and Vanessa received a first distribution of 40p per share in July 2023. The shares had a market value of £9.75 per share just after this distribution.
(a) Show how the distribution will be dealt with for CGT purposes.
(b) Calculate the chargeable gain arising in March 2024, when Vanessa received a second and final distribution of £9.82 per share.
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a The value of the shares immediately prior to the distribution must have been 1015 per share 975 ...View the full answer
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