Before a disposal is identified with any previous acquisition or pool, it is matched, as far as possible, with acquisitions on the same day which are made in the same capacity. For this purpose, all acquisitions on the same day are treated as if they were made by a single transaction and all disposals on that day are similarly treated as made by a single transaction (TCGA 1992, s. 105(1)).

Example 1

David carried out the following transactions in £ ordinary shares of Priodot Ltd:

No. of

shares

Value

£

Acquired 1/6/Year 1

1,000

3,200

Acquired 31/7/Year 3

  400

1,600

Disposal 8/9/Year 9

  (230)

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