| CGT on compulsary sale of shares [message #390205] |
Do, 18 Mai 2006 21:46 |
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I hold a significant number of shares in the company I work for, which
is currently listed on the AIM. A takeover has just been announced by a
US company who plan to withdraw from the AIM, compulsorily repurchase
all shares and re-privatise the company.
In this situation, forced to suddenly sell all my shares in one go,
would I be liable for CGT on any profit?
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| Re: CGT on compulsary sale of shares [message #390206 ] |
Do, 18 Mai 2006 21:58 |
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On Thu, 18 May 2006 20:46:03 +0100, Mr Scummy <nospam [at] nospam.com>
wrote:
>I hold a significant number of shares in the company I work for, which
>is currently listed on the AIM. A takeover has just been announced by a
>US company who plan to withdraw from the AIM, compulsorily repurchase
>all shares and re-privatise the company.
>
>In this situation, forced to suddenly sell all my shares in one go,
>would I be liable for CGT on any profit?
Have you looked at the liability of AIM shares for CGT? Go to
http://www.hmrc.gov.uk/cgt/ and read it up.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
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| Re: CGT on compulsary sale of shares [message #390211 ] |
Do, 18 Mai 2006 22:25 |
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Terry Harper wrote:
> On Thu, 18 May 2006 20:46:03 +0100, Mr Scummy <nospam [at] nospam.com>
> wrote:
>
>> I hold a significant number of shares in the company I work for, which
>> is currently listed on the AIM. A takeover has just been announced by a
>> US company who plan to withdraw from the AIM, compulsorily repurchase
>> all shares and re-privatise the company.
>>
>> In this situation, forced to suddenly sell all my shares in one go,
>> would I be liable for CGT on any profit?
>
> Have you looked at the liability of AIM shares for CGT? Go to
> http://www.hmrc.gov.uk/cgt/ and read it up.
I've dug around at the HMRC site but unfortunately I can't find any
clear explanation of the CGT rules relating to the compulsory
re-purchase of shares. Perhaps it's just treated the same as if I'd
sold them all voluntarily, i.e. I'll be hit with a hefty CGT bill :(
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| Re: CGT on compulsary sale of shares [message #390229 ] |
Fr, 19 Mai 2006 15:30 |
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"I've dug around at the HMRC site but unfortunately I can't find any
clear explanation of the CGT rules relating to the compulsory
re-purchase of shares. Perhaps it's just treated the same as if I'd
sold them all voluntarily, i.e. I'll be hit with a hefty CGT bill :( "
Don't companies usually offer you a "loan note" instead of the money in
situations like this? Then you cash in the loan note at a time of your
own choosing that is more convenient for your CGT planning.
Robert
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| Re: CGT on compulsary sale of shares [message #390240 ] |
Fr, 19 Mai 2006 19:07 |
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Robert wrote:
> "I've dug around at the HMRC site but unfortunately I can't find any
> clear explanation of the CGT rules relating to the compulsory
> re-purchase of shares. Perhaps it's just treated the same as if I'd
> sold them all voluntarily, i.e. I'll be hit with a hefty CGT bill :( "
>
> Don't companies usually offer you a "loan note" instead of the money in
> situations like this? Then you cash in the loan note at a time of your
> own choosing that is more convenient for your CGT planning.
>
> Robert
>
The offer document does state that shareholders can elect to receive
Loan Notes rather than cash for their shares, but it goes on to state
that these notes will then be repaid in full in March 2007, so it seems
the overall CGT liability in this FY would end up just the same (hence
I'm also uncertain what function the Loan Notes are meant to serve).
Hopefully there will be some clarification from the company bosses in
the coming weeks; I just hoped someone here might have been through a
similar process...
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| Re: CGT on compulsary sale of shares [message #390243 ] |
Fr, 19 Mai 2006 19:42 |
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"Mr Scummy" <nospam [at] nospam.com> wrote in message
news:446dfb4f$0$8333$da0feed9 [at] news.zen.co.uk...
> Robert wrote:
> > "I've dug around at the HMRC site but unfortunately I can't find any
> > clear explanation of the CGT rules relating to the compulsory
> > re-purchase of shares. Perhaps it's just treated the same as if I'd
> > sold them all voluntarily, i.e. I'll be hit with a hefty CGT bill :( "
> >
> > Don't companies usually offer you a "loan note" instead of the money in
> > situations like this? Then you cash in the loan note at a time of your
> > own choosing that is more convenient for your CGT planning.
> >
> > Robert
> >
>
> The offer document does state that shareholders can elect to receive
> Loan Notes rather than cash for their shares, but it goes on to state
> that these notes will then be repaid in full in March 2007, so it seems
> the overall CGT liability in this FY would end up just the same (hence
> I'm also uncertain what function the Loan Notes are meant to serve).
>
> Hopefully there will be some clarification from the company bosses in
> the coming weeks; I just hoped someone here might have been through a
> similar process...
Are you influential enough to tell the US company when the UK tax year runs
?
And is your position in the company such that they will want to keep you
happy ?
(you could always ring your tax inspector and ask ?)
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| Re: CGT on compulsary sale of shares [message #390247 ] |
Fr, 19 Mai 2006 20:17 |
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Miss L. Toe wrote:
> Are you influential enough to tell the US company when the UK tax year runs
> ?
> And is your position in the company such that they will want to keep you
> happy ?
LOL - I wish I was!
Actually, I was aiming to leave a.s.a.p. but I'm now waiting to see what
effect the takeover has.
> (you could always ring your tax inspector and ask ?)
True. I'll do that if the company doesn't clarify things in the next
few weeks.
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| Re: CGT on compulsary sale of shares [message #390312 ] |
Mo, 22 Mai 2006 10:54 |
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"Mr Scummy" <nospam [at] nospam.com> wrote in message
news:446e0bcc$0$684$fa0fcedb [at] news.zen.co.uk...
> Miss L. Toe wrote:
> > Are you influential enough to tell the US company when the UK tax year
runs
> > ?
> > And is your position in the company such that they will want to keep you
> > happy ?
>
> LOL - I wish I was!
>
> Actually, I was aiming to leave a.s.a.p. but I'm now waiting to see what
> effect the takeover has.
>
> > (you could always ring your tax inspector and ask ?)
>
> True. I'll do that if the company doesn't clarify things in the next
> few weeks.
>
If there is a Mrs Scummy you can probably gift her some of the shares and
use her CGT allowance as well as yours.
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