| Tax Return / Income from shares in a company that was acquired [message #380019] |
Mi, 12 April 2006 20:09 |
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I had some shares in a company that was acquired "by means of a scheme
of arrangement under section 425 of the companies act". Upshot was that
the shares I had were effectively purchased from me. Is this subject to
income tax, or capital gains tax, and if it's capital, do I only need to
declare it if my total Capital gain for past tax year is greater than
the ~£8500 allowance?
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| Re: Tax Return / Income from shares in a company that was acquired [message #380032 ] |
Do, 13 April 2006 00:14 |
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On Wed, 12 Apr 2006 19:09:30 +0100, Ian Cornish <icornish [at] talk21.com>
wrote:
>I had some shares in a company that was acquired "by means of a scheme
>of arrangement under section 425 of the companies act". Upshot was that
>the shares I had were effectively purchased from me. Is this subject to
>income tax, or capital gains tax, and if it's capital, do I only need to
>declare it if my total Capital gain for past tax year is greater than
>the ~£8500 allowance?
If youn go to the HMRC web site and click on "Self-Assessment" at the
top (not "do it online"), they now have all the forms and help sheets
for 2005-6 available to download. You need SA108 and S108-Notes.
You have disposed of the shares and received a capital sum in
exchange. If that sum exceeds £34,000, then you have to declare the
disposal, even if the gain was less than £8,500. The actual words are:
Fill in the Capital Gains Pages if:
• you disposed of chargeable assets in the year to 5 April 2006
worth more than £34,000, or
• you have allowable losses which must be deducted from your
chargeable gains for the year and your chargeable gains before
deducting losses and applying taper relief total more than
£8,500, or
• you have no allowable losses which must be deducted from your
chargeable gains for the year and after applying taper relief your
taxable gains total more than £8,500, or
• you want to claim an allowable capital loss, or make any other
Capital Gains claim or election for the year.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
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| Re: Tax Return / Income from shares in a company that was acquired [message #380037 ] |
Do, 13 April 2006 07:59 |
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Terry Harper wrote:
> On Wed, 12 Apr 2006 19:09:30 +0100, Ian Cornish <icornish [at] talk21.com>
> wrote:
>
>> I had some shares in a company that was acquired "by means of a scheme
>> of arrangement under section 425 of the companies act". Upshot was that
>> the shares I had were effectively purchased from me. Is this subject to
>> income tax, or capital gains tax, and if it's capital, do I only need to
>> declare it if my total Capital gain for past tax year is greater than
>> the ~£8500 allowance?
>
> If youn go to the HMRC web site and click on "Self-Assessment" at the
> top (not "do it online"), they now have all the forms and help sheets
> for 2005-6 available to download. You need SA108 and S108-Notes.
>
> You have disposed of the shares and received a capital sum in
> exchange. If that sum exceeds £34,000, then you have to declare the
> disposal, even if the gain was less than £8,500. The actual words are:
>
> Fill in the Capital Gains Pages if:
> • you disposed of chargeable assets in the year to 5 April 2006
> worth more than £34,000, or
> • you have allowable losses which must be deducted from your
> chargeable gains for the year and your chargeable gains before
> deducting losses and applying taper relief total more than
> £8,500, or
> • you have no allowable losses which must be deducted from your
> chargeable gains for the year and after applying taper relief your
> taxable gains total more than £8,500, or
> • you want to claim an allowable capital loss, or make any other
> Capital Gains claim or election for the year.
>
OK, in my case, it was a £100 total sale, and £50 gain... so tax man
need not know :-) (And that was all of my total gains/disposals from
last year.
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