Example of disposal within CTA10\S9C

On 1 September 2008 Finance One Ltd, a UK company with an US$ functional currency, acquired $200 of shares at a time when their Sterling value was £118.

On 1 September 2014 Finance 2 Ltd sold the shares to a third party for £350 sterling.

The computation is as follows:-

Third party sale 1 September 2014
Proceeds of sale £350
converted into US$ at the spot rate on 1/9/14 (£350 at 1.6) $560
Less base cost -$200
Indexation 9/08 to 9/14 -$46
Net gain on disposal calculated in US$ $314
Gain converted into sterling at spot rate on date of disposal £196

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