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.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
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
Every lesson comes with a full searchable transcript - included with the course.
Get the Taxation course
All 192 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in