Vodafone Shares

A

Alan Robert

Registered User
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38
Bought Eircom shares at floatation. Now own Vodafone shares. Reinvested dividiends, defaulted to alternative one when got 8 for 7 shares etc. What is the position re: capital gain/loss? Surely there are a lot of people like me bt can't find simple answer. Shares doing OK now and want to sell
 
I found this on the Vodafone website - hope it helps (dont ask me to make sense of it though ! ) :confused: :

Cost Basis For UK Shareholders:

For UK capital gains tax purposes, the original base cost of Existing
ordinary shares is apportioned between the New ordinary shares and the
B shares by reference to their respective market values in accordance
with the following:

The proportion of the original base cost allocated to the B shares is
calculated by multiplying the original base cost by a ratio, X/(X+Y)
where:

X is equal to the number of B shares issued to the shareholder
multiplied by 15 pence; and

Y is equal to the number of New ordinary shares multiplied by 116.125
pence, being the relevant market value of a New ordinary share

Due to the existence of fractional entitlements for most shareholders,
where the number of Existing ordinary shares does not divide exactly
by 8, this ratio will be different for each shareholder.

The remaining original base cost is allocated to the New ordinary shares.
 
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