T
Tom
Guest
An Uncle of mine recently received documentation from the Collector-General regarding a Capital Gains Tax liability from First Active shares. The payment is due by October 31 2004 and has been explained below. The problem is that neither of us understand the calculations. I was hoping that someone might be able to explain them to us particularly the detail on how allowable costs were charged.
The detail goes as follows:
" You acquired 450 free First Active shares in 1998. In addition, you acquired 45 loyalty shares, at no cost, during 1999 and 2000. On floatation of first Active in 1998, you bought an additional 421 shares for Euro 1,202.75. On the acquisition of First Active by the Royal Bank of Scotland you received a cash paymeny of Euro 5,679.20. Therefore your Capital Gains Tax for 2004 is as follows, assuming you have no other chargeable gains or allowable losses:
Cash Received 5679.20
Allowable costs * 901.42
Chargeable gain 4777.78
Less personal exemption 1279.00
Net Chargeable gain 3507.78
Tax PAyable (20%) 701.55
* In June 2003 you received a payment of Euro 1025.92 from First Active. This payment constituted a capital event for CGT purposes. Part of the cost of purchasing the 421 shares (Euro 459.00 of the Euro 1202.75) must be allocated against the amount received. The balance of Euro 743.75 is adjusted for inflation by a multiplier of 1.212 to give the allowable costs of Euro 901.42"
Any assistance received would be much appreciated.
The detail goes as follows:
" You acquired 450 free First Active shares in 1998. In addition, you acquired 45 loyalty shares, at no cost, during 1999 and 2000. On floatation of first Active in 1998, you bought an additional 421 shares for Euro 1,202.75. On the acquisition of First Active by the Royal Bank of Scotland you received a cash paymeny of Euro 5,679.20. Therefore your Capital Gains Tax for 2004 is as follows, assuming you have no other chargeable gains or allowable losses:
Cash Received 5679.20
Allowable costs * 901.42
Chargeable gain 4777.78
Less personal exemption 1279.00
Net Chargeable gain 3507.78
Tax PAyable (20%) 701.55
* In June 2003 you received a payment of Euro 1025.92 from First Active. This payment constituted a capital event for CGT purposes. Part of the cost of purchasing the 421 shares (Euro 459.00 of the Euro 1202.75) must be allocated against the amount received. The balance of Euro 743.75 is adjusted for inflation by a multiplier of 1.212 to give the allowable costs of Euro 901.42"
Any assistance received would be much appreciated.