EMAP offer: CGT or income+CGT?

Advice please

There's a bid currently in place for EMAP The offer seems to be: special dividend of £4.61 per share cash offer of £4.70 per share total of £9.31 per share.

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Is the whole £9.31 the proceeds for CGT (offset against base cost) which would give a small gain; or is the special dividend of £4.61 per share treated under income tax, and the cash offer of £4.70 per share treated (creating a CGT loss)

TIA

Reply to
Allan Gould
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On the face of it the dividend would be income, which as you suggest is a nutcase way of making an offer

tim

Reply to
tim (not at home)

Actually, it's quite a neat way of making the offer (in my circs). If the offer was all £9.31 per share, I'd be getting a CGT bill (over the annual CGT allowance for the whole tax year). As it is, at £4.70/sh, I'm getting a loss which happens to be quite useful close to the end of the tax year. I end up getting £9.31/share cash (capital and income payments), paying less CGT, or possibly no CGT as it could bring me back down inside the annual allowance (but of course, I'll be paying income tax on the special dividend).

Reply to
Allan Gould

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