Illustration - takeovers
You'll learn how to calculate chargeable gains when shares are acquired in a takeover involving both cash and share consideration. This illustration walks through a real scenario where an investor receives cash and new company shares in exchange for their original holding, then sells those new shares later.
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In this lesson
- 0:00 Takeover illustration and scenario setup
- 0:51 Calculating the chargeable gain on acquisition
- 2:01 Apportioning original cost between cash and shares
- 3:39 Selling Middleton shares in June 2027
- 4:31 Key takeaway on chargeable versus taxable gains
About this lesson
You'll see how to split the original cost between the cash element and the share element, and how to track the base cost of replacement shares through to a subsequent disposal. This is essential for Advanced Taxation (ATX) and helps you handle the complexities of paper-for-paper transactions where partial cash consideration triggers a chargeable gain at acquisition.
Duration: 5m
Transcript
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