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PLC RIGHTS SOLD NIL PAID CGT FREE? EX-BES PLC CO

Client sells PLC rights issue nil paid for £20k. Shares originally Business Expansion Scheme. CGT?

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Client recently received £20k for sale of rights nil paid on his Plc shareholding.

Shares were originally subscribed for by him under the Business Expansion Scheme prior to 31 December 1993.

The BES Ltd company was taken over by a quoted Plc around 15 years ago on what looks like a share for share exchange.

Do the new Plc shares still enjoy BES CGT exemption. If so, does that feed through to the sale of rights for £20,000.

Or does it depend on exactly what happened 15 years ago.

Just asking because I have not seen this sort of thing before.

 

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Hallerud at Easter
By DJKL
29th Oct 2019 15:07

I did mean to say, do you know what they received for the original shares, did they get more than one instrument or just the nil paid shares? Sometimes on takeovers I have received a mix of shares/warrants/allsorts. (Though usually within my pension so tax does not really feature in my thinking)

If that is the case there may be within the original RNS some details about the deal (albeit target was not quoted) which may be worth reading as you may need to allocate original cost across the bits acquired if more than one instrument acquired.

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Replying to DJKL:
By penelope pitstop
29th Oct 2019 17:11

Thanks for that.
Presently researching the share history.

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