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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4985
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a basic rate taxpayer on a pension but have a large number

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I am a basic rate taxpayer on a pension but have a large number of BG shares. The company is in the process of being taken over by Royal Dutch Shell within the next two weeks. There are three options but the Default Consideration is one that for each share a BG investor holds, he/she will receive 383 pence in cash and 0.4454 Shell B shares. If one has a large number of BG shares, as I have as a former employee, will the cash element be subject to Capital Gains Tax?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your quetionCash element will be subject to CGT.Look at example 7 of HS285. It shows how CGT is calculated on the cash element when consideration is in cash and shares. Look herehttps://www.gov.uk/government/publications/share-reorganisations-company-takeovers-and-capital-gains-tax-hs285-self-assessment-helpsheet/hs285-share-reorganisations-company-takeovers-and-capital-gains-tax-2015 I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’llbe happy to respond.
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Expert:  taxadvisor.uk replied 1 year ago.
Hi
Just checking in. How did things turn out?
Many thanks
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes