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Stamp duty and Commission costs of Purchasing Shares


If investment shares purchased by a company have incurred stamp duty and commission costs does this form part of the cost of the short term investment in the Balance sheet?  Or is it only the value of the shares that go to the balance sheet and these costs go in the P&L (assuming not CT deductible)?

Any clarification would be really appreciated.

Thanks in advance.


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14th Jun 2012 14:56


If you are treating the shares as current asset investments, I think that these incidental costs must be regarded as part of the cost of acquiring the asset and will then be deducted from the chargeable gain on the eventual sale proceeds, net of commission.

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