Reorganisations and takeovers
You'll learn how reorganisations and takeovers work for capital gains tax purposes, and why the type of consideration you receive fundamentally changes your tax position.
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In this lesson
- 0:00 Reorganisations and takeovers overview
- 0:12 How takeovers work and share exchanges
- 0:26 Takeover consideration types
- 1:12 Disposal and capital gains treatment
- 1:38 Paper for paper exchange explained
- 2:15 New shares standing in old shoes
- 2:47 Multiple share types and cost apportionment
- 3:26 Conditions for paper for paper treatment
About this lesson
This lesson covers share-for-share exchanges (where no gain is charged at takeover), mixed consideration (shares plus cash or bonds), and the conditions HMRC requires for paper-for-paper treatment. You'll see how to calculate cost allocation when different share types are involved, and understand why deferring gains until you actually sell new shares is often the most tax-efficient approach. Essential knowledge for the CGT section of your paper.
Duration: 4m
Transcript
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