Takeovers and reorganisations
You'll learn how takeovers and reorganisations are treated for tax purposes, and why paper-for-paper transactions trigger no immediate gain.
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In this lesson
- 0:00 Takeovers and reorganisations explained
- 0:42 Paper for paper transactions and no gain rule
- 1:27 Base cost treatment in share-for-share exchanges
- 2:25 Mixed consideration and immediate gains
- 4:01 Apportioning base cost between cash and shares
About this lesson
This lesson covers when gains arise on takeovers (cash consideration), how to split base cost between cash and share consideration, and how new shares inherit the cost of original shares. Essential for understanding capital gains tax treatment in M&A scenarios across ACCA and CIMA qualifications.
Duration: 6m
Transcript
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