CGT: Eircom Shares: I can't find the paperwork that will tell me what actions happene

L

LeperKing

Registered User
Messages
14
I'm trying to do my CGT figures,but I can't find the paperwork that will tell me what actions happened.

This is what I know.....

I got 5080 ericom shares when they originally floated. I can't remember when that happened, and how much it cost.

I then got 2407 vodafone shares, when eircom was bought out. I dont know when this happened and how 5080 eircom shares turned into 2407 vodafone shares.

Can anyone figure out what the missing pieces are? I sold the vodafone shares last year for x euros.

Thanks,
LK.
 
Re: Ok, I'm an idiot...

Have you read this thread? Bear in mind that anybody is still confused after reading it is not necessarily an idiot. At least that's my excuse for my ongoing confusion over this issue...! :eek:
 
Re: Ok, I'm an idiot...

Thanks CM, but I don't think I'm at that stage yet, as I actually can't remember the original figures involved, nevermind working out the CGT.

Thanks,
LK
 
Re: Ok, I'm an idiot...

I don't understand what you mean by not being "at that stage yet"? Joking aside that thread does explain all you need to know even if you need to keep your wits about you when reading it. One of Brendan's posts should summarise the general approach.
 
Re: Ok, I'm an idiot...

Ok I'll have a go. Does anyone remember the exact dates when all these things happened?
 
Re: Ok, I'm an idiot...

eircom IPO - July 1999
Vodafone takeover of demerged eircell 2000 - May 2001
eircom taken private by Valentia - December 2001
 
Re: Ok, I'm an idiot...

I think it would be as follows using Brendans post as guide

((5080*3.90)/100)*43 = price paid at IPO for Eircom shares

Presumably you got bonus Eircom shares after a year - 1 for 25 I think so your final shareholding was 5283??

If so then Valentia paid you 5283*1.335

Subtract this from price paid at IPO and that is your loss for Eircom.


your on your own for the Vodafone piece!
 
Re: Ok, I'm an idiot...

needless to say check this yourself and don't take my calculations as gospel!
 
Re: Ok, I'm an idiot...

Use your loss from eircom shares then offset it against the gain you made on Vodafone shares before calculating the CGT.
 
Re: CGT: Eircom Shares: I can't find the paperwork that will tell me what actions hap

I've taken the information from here. As it layed out the steps very clearly.

JULY 1999
Original sum of €19,851 = 5080* Eircom Shares (€3.90 per share)

MAY 2001

On the day after the Vodafone takeover of eircell2000 the following base prices were decided on by the Revenue:

* eircom = €1.11
* Vodafone = €1.45406
* total = €2.56406

Thus

* eircom = (€1.11 / €2.56406) x 100 = 43% (43.2907... rounded down)
* Vodafone = (€1.45406 / €2.56406) x 100 = 57% (rounded up)

Eircom

* nominal cost of eircom shares = €3.90 x 43.2907...% = €1.69 (note that the 43% rounded percentage figure will not give the same answer!).

Thus

* loss per share based on Valentia offer price (excluding dividend) = €1.69 - €1.365 = €0.325

Vodafone

* Nominal cost per eircell2000 share = €3.90 - €1.69 = €2.21
* Nominal cost per Vodafone share = (€2.21 x 2) / 0.9478 = €4.66 (rounded down)
* Market value of Vodafone shares (based on recent stock price and €/GBP£ exchange rate) = GBP£1.87 = c. €3.02 (GBP£1.87 / 0.62)
* Paper loss per Vodafone share = €4.66 - €3.02 = €1.64.

Value of Vodafone shares are €3.02 * 2407 = €7269.14

2004

Sold 2407 vodafone shares at €4701.83 (Approx €1.95 each)

OVERALL CGT LOSS FOR 2004

"Bought" vodafone shares for €7269.14
Sold for €4701.83

CGT loss of (7269.14 - 4701.83) = €2567.30 (This is the magic figure I need!)


*Including bonus shares I think...

Would anyone agree this information is accurate 'enough' for the revenue.
Does indexation come into this, as I can't remember when it was phased out?

Use your loss from eircom shares then offset it against the gain you made on Vodafone shares before calculating the CGT.
Click to expand...
Sorry Karangka, could you explain if that applies to my situation, and what would be the differences?

Thanks,
LeperKing
 
You must log in or register to reply here.
Back
Top