Capital gains and tax liabilities after restructuring of a Company

I held shares in General Electric in 2014. Over the years GE has restructured itself, selling off businesses and recently splitting itself into three new independent businesses. GE Aerospace, GE Healthcare, and GE Vernova. During these splits I as a shareholder received shares in the new businesses. Having sold part of its power business to Wabtec, I also received shares in Wabtec. Having split into GE Healthcare and GE Vernova I received shares in each of those companies. How does HMRC see these shareholdings? Does it see them as “gifts” What are the tax implications on such shares?

Hi 

These are not gifts. They would be included for working out any capital gains due if sold - Company share reorganisations

Thank you

Thanks for replying… These shares are commonly given as compensation because the original company value generally drops having become smaller so how would capital gains be calculated on such shares? When GE split partly into GE Vernova my GE shares dropped in value

Hi Thomas Paton,
For more details guidance,please refer  to the guidance in the CGT Manual specifically -
CG51700C - Capital Gains Manual: Shares and Securities: Share reorganisations: contents
CG51920 - Reorganisations of share capital: apportioning costs after a bonus issue
Thank you. 

Thank you