ATXP6 UK
NOTICE: Register for the September exam until 11th May!!!

All students that had entered for the June 2020 exam will have received a credit on their MyACCA account (unless their employer or learning provider paid ACCA directly).

We recommend you to use this refund to enter for the September 2020 exams, this will secure your entry and location of choice. 

You will also benefit from the cheaper Early Exam Entry fee if you book by 11th May.

King, a wealthy client of your firm with a significant property portfolio, requires advice on the sale of some unquoted shares and on the capital gains tax.

King:
– Is resident and domiciled in the UK.
– Is an additional rate taxpayer.
– Has used his capital gains tax annual exempt amount for the tax year 2015/16.

King’s plans:
– On 1 September 2015, King will sell some of his shares in Wye Ltd.

Sale of shares in Wye Ltd:
– Wye Ltd is an unquoted investment company.
– King acquired 5,000 shares in Wye Ltd on 1 June 2002 at a cost of £5 each.
– These shares will be worth £45 each on 1 September 2015.
– King will sell sufficient shares to generate after-tax proceeds of £30,000.

Required:
(a) Calculate the minimum number of shares in Wye Ltd which King must sell to generate after-tax proceeds of £30,000. (3 marks)

158 others have taken this question