Share buyback on estate return

buffalito

Hi,

I'm acting as one of the executors on my late mother's estate. I'm filling in a tax return for the administration period and wanted to know whether a cheque we received from Std life Aberdeen for their recent share buyback is counted as a dividend, capital gain or neither. I've checked the pdf on their website but cannot make any sense of it.

Thanks.

A

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Yorkshireman99

buffalito wrote: »

Hi,

I'm acting as one of the executors on my late mother's estate. I'm filling in a tax return for the administration period and wanted to know whether a cheque we received from Std life Aberdeen for their recent share buyback is counted as a dividend, capital gain or neither. I've checked the pdf on their website but cannot make any sense of it.

Thanks.

A

It depends on the exact terms of the holding. I would first ring Standard Life and ask. Other have tried the HMRC qnquiry line?

Yorkshireman99

Yorkshireman99 wrote: »

It depends on the exact terms of the holding. I would first ring Standard Life and ask. Other have tried the HMRC qnquiry line?

Ps. I did. a quick google and it seems like a repayment of capital r.Capital gain may may be due but the documents sent to shareholders should have explained. My original comments still apply.

Tom99

Is this for the sale of the B shares?
If so I think as YM99 says it counts as a disposal for CGT so you need to work out the acquisition price of the B shares sold.
On the 1st trading day of the B shares, 22nd Oct 2018, the relevant values were New Ordinary Shares 262.3p and B Shares 33.99p and they were issued in the ratio 8 B Shares and 7 New Ordinary Shares.

Therefore the acquisition price of the Old Ordinary Shares should be apportioned 12.9% to the B Shares and 87.1% to the New Ordinary Shares

I assume your mother died before 22nd Oct 2018?