Capital Gains on Viridian

[Allen]

I purchased 1300 Viridian shares on 28 May 2003 at a cost of €10231.79. On 15th August 2005 these shares were redeemed and I received 1170 new shares plus £949 (sterling) a few days later (19th August).

This was done on the basis that “Shareholders received 1 B share for every existing share and 9 new shares for every 10 existing shares.” The B shares were then redeemed for which I got the £945.

At the end of last year I had some other capital gains that bring me over the exemption limit. Do I have to pay CGT on the £945? If so how, do I calculate what I purchased them for, so that I can work out how much Capital Gain I made?

 

[nmh001]

you need to find out the value of the 1170 new shares on the 15th of August 2005.

For CGT the original cost of €10231.79 is apportioned between the B shares and the new shares according to their value on the date of the split.

The B shares were obviously worth £949 but you need to know the value of the 1170 new shares to do the apportionment.