S
SYABC
Member
I am confused as to when to apply and when not to apply indexation.
For example, a share bought at £100 one year ago and sold at £110. Assuming 5% inflation rate, the taxable realised gain is £110-£100x1.05=£5.
What happen if the share is sold at £103?
Is the taxable realised gain/loss
1) £103-£100 =£3
or
2) £103-£100x1.05 = -£2
thank you
For example, a share bought at £100 one year ago and sold at £110. Assuming 5% inflation rate, the taxable realised gain is £110-£100x1.05=£5.
What happen if the share is sold at £103?
Is the taxable realised gain/loss
1) £103-£100 =£3
or
2) £103-£100x1.05 = -£2
thank you