Land Secs - Return of capital - HELP

Sep 08, 2005 2 Replies
G

I'm at the end of my tether here. I had some LandSec shares acquired in early 1990's. In 2002, according to some obscure (to me) scheme of arrangement, I was allocated some 'A' shares (which were sold) and I understood that this was a return of capital having no CGT implications at that time. This year I sold the ordinary shares which replaced the original ones (7 for every 8). Now, I have not the remotest idea how to calculate the resulting capital gain. OR to be exact, I have SEVERAL ideas as to how to do this - but there must be an official way, and I do not know what that way might be. Eheu! Can anyone here help?



HOMKP!!! (Help: On My Knees Pleading )


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D

Try the Motley Fool - Land Securities forum or call the registrar for help.

I benefited from the same SoA but can no longer remember the details and I held them in an ISA anyway.

Daytona

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T

In 2002 you effectively sold 1/8th of your original shares for the money realised by the sale of the A-shares. Presumably the amount was below the CGT allowance.

However you have to grapple with indexation to 5th April 1998 and tapering relief after that date. Your initial cost will be 7/8ths of the value as at 6 April 1998. You know your selling price, and the costs of sale. Take off the initial cost and the annual CGT allowance. Now apply tapering relief which should be 30% or 35%.

The indexation figures and the tapering system can be found on the HMRC web site

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in publication CGT1.

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