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CGT treatment of RBS Rights Issue Compensation?

Application of A/A+B rule to the 1st Royal Bank of Scotland compensation received 2017/18.

Client subscribed to the 2008 Royal Bank of Scotland rights issue. Client now holds around 525 RBS shares with a historic cost of around £7,000.

Towards end of 2017/18 he received a cheque for around £600 in respect of the first interim settlement (there will be more compensation to come in the future).

We want to use the A/A+B formula in order to preserve the CGT base cost. We know that A = £600 in the formula, and that B is the market value of the retained shares. But on what date do we ascertain the MV of B. The compensation cheque was sent to client late March 2018. The covering letter mentions that settlement was reached in 2017. But there is no specific CGT date mentioned which we can use for the A/A+B formula.

Have any readers come across this yet. If so, how have you treated the proceeds for CGT purposes, and how have you applied the A/A+B rule. Is there any published data (like FT Interactive) on this subject.

We do not want to use the "small proceeds" route since this will waste £600 of CGT cost.

Thanks for any useful comments.

 

 

 

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