Page 62 - P6 Slide - Taxation - Lecture Day 1

Standard Proceeds formula (par 30(2))

The proceeds formula is based on the premise

that

• post-valuation date expenditure generates

only post-valuation date gain/loss, while

• pre-valuation date expenditure generates

both pre-valuation date gain/loss and post-

valuation date gain/loss

– we have to determine which part of proceeds

relates to the pre-valuation date gain/loss