Company takeover and ISA implications

trint76

Hi, I'm hoping someone can advise (just hope this hasn't been posted before). I have an S&S ISA and two companies within that ISA are being taken over (one looking guaranteed and the other still awaiting confirmation). This is good in the scheme of things but I assume not so for my ISA. I'm thinking I won't be allowed to stick the cash received for these shares back into my ISA wrapper, is this correct..? I hold a significant proportion of my ISA capital in these companies and I really don't want to loose the ISA benefits. There is still the possiblity of selling these shares but obviously at a lower value than the offer. Any thoughts/feedback appreciated.

barak

You won't receive the cash from any takeover - your ISA manager will. The cash will stay in your ISA. Your ISA manager will keep you informed and can explain what options are open to you for re-investment within your ISA.

Farway

SOmetimes the takeover can involve a share swap, you own company A, takeover by company B, who may offer say 2 Comapny B shares for every Company A share, or cash

As in Alliance & Liecester take over by Santander {no cash option IIRC]

That is the tricky decision, would you like shares in new company, or cash?

At least with new shares there will be no stamp duty or dealing charges, but you may not like the new merged outfit so would want cash & pick again

All done within ISA, so no loss of tax free status, or need to declare on tax return

trint76

Thanks for the feedback. Its more than likely that the cash offer is to be carried out as a preliminery offer has already been made with the board's approval and recommendation to accept (SINOPEC for Addax Oil). Will now have to see what happens with Dragon Oil. Thanks again.