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Nicola-mod, Moderator
Category: Law
Satisfied Customers: 21
Experience:  Moderator
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We bought privatisation shares in British Gas how do we work

Customer Question

We bought privatisation shares in British Gas how do we work out the capital gains taking the bonus shares and the split into BG, Centrica and National Grid
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you.

Do you remember how much you paid?


Customer: replied 1 year ago.
£1.35 per share, after split between BG group, Centrica and National Grid we had 940 shares, I am trying to work back to see how many we subscibed to at privatisation, I think it was 1000 shares, we sold the 940 for £9746.61 Feb 2016 I don't have the time at the moment to have a tel conversation so I will see if we can sort it this way and maybe have a call another day soon if its necessary
Expert:  Ash replied 1 year ago.

Sure. Do you know what the value is now if you sell?

Customer: replied 1 year ago.
Hi Alex, sorry about the time lag, we sold 940 BG Group shares this feb. for a total of £9746.61
I have attempted to calculate the base cost by following a page on listing the events from B Gas privatisation - B G bonus shares - BG/Centrica demerger - BG B share scheme - ending of indexation for CGT - BG B share conversion - BG Group plc created with the ratio 8 BG Group shares for 9 BG ordinary shares.
I came up with a base cost £1690 for the 940 shares.
I would appreciate it greatly if you would let me know if you agree and if not please put me right
Customer: replied 1 year ago.
Hi Alex we paid £1.35 per share at privatisation
Customer: replied 1 year ago.
Hi Alex At privatisation we bought 1000 shares for £1.35 per share, sorry its all coming over in bits
Expert:  Ash replied 1 year ago.

Ok. Then in short your gain would be whatever you have paid less than you have sold them for.

For example if you bought for £900 in total and its now worth £2000 then your gain is £1100.

You are permitted a tax free allowance of £11,100 tax free. Anything over this would be subject to tax.

So you need to work out what you have paid for the shares and what you have sold them for. Difference is the gain.

Can I clarify anything?

Customer: replied 1 year ago.
I realise the gain is the difference between buying and selling, what I am really after is clarification of how the base cost is worked out specifically for BG Group shares right from privatization then bonus share issue then BG/Centrica demerger then BG B share scheme including all the indexation rates (up to it being discontinued) to enable me to work out a actual figure for CG, Based on the purchase of 1000 shares at privatisation, I came to you as I am having difficulty in gathering and understanding the data necessary to work it all out. Based on 1000 shares at privatization resulting in 940 shares after all the bonus's and demergers etc being sold for £9746.61
Expert:  Ash replied 1 year ago.

Thanks. You just work out what you put in vs what you get out, that is it, nothing else.

That turns out to be your gain. Remember if shares are jointly held you get double the allowance.

But even if its sold at £9746.61 there won't be any CGT

Can I clarify anything else?

Customer: replied 1 year ago.
Hi Alex, what I need is an expert to study the sequence of event as I have listed, in particular the application of the indexation allowance to work out capital gains on the BG shares as bought and sold, I need to know this as I have other capital gains which may me over the £11100 limit. I fully understand that on their own BG shares would not breach that limit. I did think I had made it clear about the help I needed
Expert:  Nicola-mod replied 1 year ago.
It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.
I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Customer: replied 1 year ago.
Hi Nicola, I will not wait for an answer so would you please cancel the question, I assume this means my £38 will be refunded via Paypal.
Thank you in anticipation