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Question 2a note v
Tax rates
Tax rates 2013
Softapp Ltd is a software developer. The company’s summarised statement of profit or loss for the year ended 31 March 2013 is as follows:
Note | £ | |
---|---|---|
Operating profit | 1 & 2 | 519,300 |
Other income | ||
Income from property | 3 | 36,700 |
Loan interest receivable | 4 | 8,100 |
Profit on disposal of shares | 5 | 64,900 |
Finance costs | ||
Interest payable | 6 | (67,200) |
Profit before taxation | 561,800 |
Note 5 – Profit on disposal of shares
The profit on disposal of shares is in respect of the sale of Softapp Ltd’s entire (2%) shareholding in Networked plc on 28 February 2013. The disposal resulted in a chargeable gain of £61,300. This figure is after taking account of indexation.
Required:
(a) Compute capital gain on disposal of shares.