somerfield shares redemption problem

drive007

Hi everyone,

On the 21 Dec 05 Somerfield PLC was aquired by a consortium, and are now a private company which no longer are listed on the London Stock Exchange.
My problem is that I have just been given a large cheque for all my shares which I held in this company for 7 years, which means I have made a profit of over £20k. The problem is that this money as all just been paid out in one which takes me way over the CGT threshold. I did not have a say in the sale of these shares, but my question is am I still liable to pay tax on all profit over the £8.5 K CGT limit, as I wanted some paid out before april 06, and the remainder after april 06 to spread cost of my profit

Many Thanks to you all

drive007

where can I find out the answer ??

cheerfulcat

Hi there,

You are still liable for the tax, I'm afraid.

Rhino666

As the previous poster said you are liable for corporation tax on the amount of gain that exceeds the allowance. Not sure if you would benefit from taper relief as you have held the shares for quite a while. you may also consider selling some shares that have lost value to offset the gains.

In the past when this sort of thing happens I thought it was possible to spread the payout over 2 tax years by keeping part of the payout as a temporary loan with the administrators - may still be worth asking about this. For future reference you could also have gifted part of the shares to your spouse or others you trust to spread the capital gain.