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TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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My mother has owned shares in Shell since 1986. She now

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My mother has owned shares in Shell since 1986. She now wishes to sell her shares which are Royal Dutch Shell plc since 19 Aug 2005.How do I work out the CGT on the sale please?

Hello and thank you for allowing me to assist you.

If the company taking over issues shares only you don’t pay Capital Gains Tax when you get the shares.

When you sell or dispose of your new shares they’re treated as if you bought them at the same time and cost as your original shares.

If your mother received shares in the new company in 2005 for her shares in the previous then you use her original cost for the sale now.

If she received any cash in 2005 then when she sells or disposes of her new shares and work out her capital gain, her allowable cost will be the cost of the original shares less the amount of cash she gets.

Customer: replied 8 months ago.
Thank you.
How do I work out the original cost of the shares?

It is what she bought them for in 1986. Her broker may be able to assist with that.

You are most welcome.
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Customer: replied 8 months ago.
Thank you for your help.