Marconi tax maze/nightmare

Jul 21, 2003 3 Replies

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Allan Gould 23 years ago

Can anyone help unravel the nightmarish tax maze landed on a shareholding of Marconi plc shares following the reorganisation of Marconi's share structure?

There is information in the recent annual report (2002/3 issued on 18 July 03) and on their website

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but it's very dry and theoretical. A worked (fictitious) example would be really helpful. The points that are worth clarifying and emphasising would be:

a) that a chargeable gain arose on 19 May (the date of the reorganisation) whether you did anything or not b) the re-allocation of the base cost and/or the new base costs of new shares and warrants c) how to go about applying for negligible value with the Inland Revenue

This whole scenario is going to get worse if the proposed consolidation (5:1) takes place in September when even more shareholders will be forced into crystallising losses.

Thanks!

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tim 22 years ago

Eh, my 2 grand that's now worth 20 pence generates a chargable gain, I think not. What it means is if that if you were lucky enough to have bought at a price lower than the 'offer' price the change in the shares will crystalise that gain. I think that this lower price never existed.

No idea. Unless you started with a few hundred grand's worth it isn't worth worrying about.

Ask your local office. I'm sure it's all very simple.

How can a 99.9% loss get any worse? Most people can carry the loss forward in any case.

Tim

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Jonathan Bryce 22 years ago

It creates a loss that could be offset against other gains.

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Daytona 22 years ago

Hi Allan

You might want to look/ask here

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and here

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hth

Daytona

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