CGT on 'listed co return of capital via B share'

CGT on 'listed co return of capital via B share'

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CGT or not...for an individual - not a ltd co

listed company scheme, [Standard Life] to return capital to shareholders via issuing B shares and then paying the shareholder for them

do you

1] allocate part of the original acquisition costs,  to the new B shares [ ie receives 1 new for each 1 held pro rata basis ? ]  and then immediately dispose -  & have a gain or loss [in this instance loss , proceeds less than 50% of the A holding cost ]  -  against the cheque in the post  

A shares then consolidated so lesser number now held 

2] can you offset the cheque in the post for the B's  against the original portfolio holding accumulated cost  to have a cost base lower

appreciate that changes are to be made to treat this process as income [draft legislation dec14] has this been enacted + if so with effect from when

shame if actually enacted - should have left it alone !!

missing anything else ?

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By kiwilondon99
01st Apr 2015 15:50

 

 

I note this afternoon - that in the Quindell suspension RNS etc they state 

The Company intends to make a capital distribution to Shareholders as detailed in the Circular and not a distribution by way of special dividend so as to try and ensure that the return of capital is tax efficient for any private Shareholders so the intent I  noted above to tax distributions of asset sale distributed to shareholders would appear not to have been enacted [ yet]    I believe Goldmans cast their eye over the circular + probably the RNS

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paddle steamer
By DJKL
01st Apr 2015 15:59

Per SL

http://www.standardlife.com/static/docs/2015/UKQA15.pdf

http://www.standardlife.com/static/docs/2015/generalmeetingcircular2015.pdf

Re the second of these have a read of the taxation 9(1) section and also 1b below 

1b)

upon a subsequent disposal of all or part of the Shareholder’s B Shares, C Shares or New Ordinary Shares, a Shareholder’s aggregate CGT base cost in such Shareholder’s holding of Existing Ordinary Shares will have to be apportioned between the B Shares, C Shares and the New Ordinary Shares by reference to their respective values on the first day on which the New Ordinary Shares are listed. A worked example with details of the respective values will be published online at www.standardlife.com/generalmeeting shortly after payments in respect of proceeds under the B/C Share Scheme have been dispatched; and

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