Tx notes fa22 Final

Calculate the Gain arising as a result of the takeover in July 2022, and the sale of the B plc 
preference shares in March 2023 
(d)
If at takeover, cash is received, a chargeable gain needs to be calculated at takeover for the 
cash element received.
 
Example 5
 
 
Using example 4 what di
ff
erence would it make if Z Ltd receives at takeover 
2 B plc ordinary shares valued at £1.50 each and £1 cash for each share in A Ltd.
The indexed rise between August 1989 and December 2017 is 1.357
You may now attempt Practice Question 22



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Chapter 20
CHARGEABLE GAINS – COMPANIES 
– FURTHER ASPECTS 
1. Part Disposals, Chattels, Non chattel wasting assets 
1.1. When a company disposes of a part but not all of an asset, the allowable cost of the part of the 
asset disposed of is computed as we saw for individuals in Chapter 12 taking the cost of the 
entire asset and multiplying by Proceeds / Proceeds + Value Remaining.
1.2. This same calculation will be performed for a company but in addition the allowable cost 
computed will then be available for indexation allowance in the normal way.