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 ?
Replies (2)
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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