Shares CGT - Acquisition Price

Mjmollo

I was hoping someone could provide some guidance to me with regard to potential CGT on some shares I hold.

A company (GSK) that I hold shares in has recently divested its business. I’ve been granted shares in a new company (Haleon) as a result of the divestment and the number of shares I hold in the original company (GSK) has reduced (I’ve been given 4 shares for every 5 shares I held).

1. Can anyone tell me what the acquisition price I should use for the shares I hold in the new company? Is it the opening price on the first day of trading?

2. What price should I use for the shares I hold in the original company? I’ve tracked the acquisition prices for all of the shares I hold in that company, however that was based on a higher number of shares. I’m not sure how to calculate a pooled price now the number of shares I own has reduced.

I did submit a question on the HMRC community forum, but was just directed to a gov.uk (Tax when you sell shares) website which didn’t really tell me anything I’m not already aware of.

Any guidance would be gratefully received.

EthicsGradient

GSK have a page giving the way you divide the cost up:

https://www.gsk.com/media/9366/demerger-of-consumer-healthcare-business-to-form-the-haleon-group.pdf

81.8420% of the cost should be attributed to the GSK shares; 18.1580% to Haleon. With the exchange of 5 old shares for 4 new ones, the best thing to do is work out the complete cost of your holding from just before the split, divide that with those percentages, and you have the cost of each holding. If you then want a cost per share, divide by the new numbers you hold of each.

This assumes you didn't buy or sell within 30 days of the spilt (and are not going to). I'd guess that if you did do any of that, you'd have to think about the "30 day rule", which I don't want to, since I don't have to.

Mjmollo

Many thanks for this guidance, it was just what I needed.

Far more useful than what the HMRC provided!!

Have a great weekend.