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bigduckontax, Accountant
Category: Tax
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I have some standard life shares, acquired in 2002. Last

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I have some standard life shares, acquired in 2002. Last year SL sold their canadian business. In that proces my share holding went from 1631 to 1334 shares, and I received a payout of £1192 for which they issued a "dividend " tax voucher. HMRC taxed me at 40%. Should this have been treated as a capital gain as I efectivley was forced to sell some shares. If so would I have paid less tax, if any on that transaction?
John Haste
Hello John, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I agree with you that this should have been treated as a capital gain and you should take this up with your tax office. Under the UK CGT regime you have an Annual Exempt Amount (AEA), currently 11.1K non cumulative, so there will probably no tax dus at all, particularly if you have no capital gains elsewhere in the year of disposal. You may encounter a problem, Standard Life having treated the share reduction as a dividend which is a scarcely appropriate treatment. I do hope that you find my reply of assistance.
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