Capital Gains Tax

loolloo78

Im currently studying for an investments exam and cant get this question to work out. can someone advise where i am going wrong please, would much appreciate it.

Jane bought shares for €11,000 in the 2002 tax year, plus acquisition costs of 3%. She sells these shares in 2011 for €23,000 less disposal costs of 2%. What is Jane's chargeable gain for Capital Gains Tax purposes in relation to his sale of these shares in 2011?

€23,000 -2%= 440 = €22,560
€11,OOO +3% 330 = €11,330

22,560 - 11,330 = 11,230

nompere

2% of €23,000 is €460 not €440.

barneystinson

loolloo78 wrote: »

Im currently studying for an investments exam and cant get this question to work out. can someone advise where i am going wrong please, would much appreciate it.

Jane bought shares for €11,000 in the 2002 tax year, plus acquisition costs of 3%. She sells these shares in 2011 for €23,000 less disposal costs of 2%. What is Jane's chargeable gain for Capital Gains Tax purposes in relation to his sale of these shares in 2011?

€23,000 -2%= 440 = €22,560
€11,OOO +3% 330 = €11,330

22,560 - 11,330 = 11,230

Indexation relief - you need to index your base cost by a factor of 1.049.

Mr. Incognito

Sale Price €23,000

Less

Sale Expenses €460

Base Cost €11,000
Cost expenses €330

€11,330 x Indexation 1.049 =€11,885.17

Total Deductions 460+11,885.17= 12345.17

Net Gain 23,000-12345= 10655
Less Annual Exemption 1270

Net Gain for CGT 9385

CGT @ 2011 is 25% (Before 6 Dec and 30% after)

I'll let you do that one on your own so you can take some credit for the answer

loolloo78

thank you