CGT on selling shares after company acquisition/reorganisation

Hello, I would like to confirm my calculation regarding the CGT due on selling share coming from a merger. I used to own shares in company A, that came from RSUs, vesting at different dates and at different prices. Last year, company A was acquired by company B. My shares in A were transferred to Cash + Shares in B following this formula: Shares B = Shares A x 0.0406 Cash = Shares A x 3.5 + partial B share as cash With 8786 shares in A, I ended up with: - 356 shares In B - $30 838.97 in cash At the time, I used the method explained in "HS285 Share reorganisations, company takeovers and Capital Gains Tax", section "Shares and Cash" [1] to determine the amount of CGT I might owe. With the vested cost of shares A being $43 353.37, I came up with a chargeable gain of $12 976.38, which was below the £12300 CGT allowance in 22/23. I now would like to sell my remaining shares, and find out the required CGT if I was to sell all of them. Those 356 shares in company B are currently valued at $52 591.88 I'm using this formula to get the Gain: Cost = Shares A value on the day of the merger - cash received Cost = 8786 x 8.18 - 30 838.97 Cost = $41 030.51 Gain = Shares B value - cost Gain = 52 591.88 - 41 030.51 Gain = $11561.37 This would be around £9,133.48 so I would have to pay CGT on £3,133.48 given this year CGT allowance. You can see those calculation on this google sheet [2]. Is this method to determine the cost of my Shares in B correct? I am trying to confirm that the original cost basis of the Shares in A is now irrelevant, and only the cost at the time of the merger should be taken into account. [1] https://www.gov.uk/government/publications/share-reorganisations-company-takeovers-and-capital-gains-tax-hs285-self-assessment-helpsheet/hs285-share-reorganisations-company-takeovers-and-capital-gains-tax-2021#sharesandcash [2] [Link removed by admin]

I see the admin's edit ate all the formatting. I'll try to post again by removing the spreadsheet linked myself. Hello, I would like to confirm my calculation regarding the CGT due on selling share coming from a merger. I used to own shares in company A, that came from RSUs, vesting at different dates and at different prices. Last year, company A was acquired by company B. My shares in A were transferred to Cash + Shares in B following this formula: Shares B = Shares A x 0.0406 Cash = Shares A x 3.5 + partial B share as cash With 8786 shares in A, I ended up with: * 356 shares In B * $30 838.97 in cash At the time, I used the method explained in "HS285 Share reorganisations, company takeovers and Capital Gains Tax", section "Shares and Cash" [1] to determine the amount of CGT I might owe. With the vested cost of shares A being $43 353.37, I came up with a chargeable gain of $12 976.38, which was below the £12300 CGT allowance in 22/23. I now would like to sell my remaining shares, and find out the required CGT if I was to sell all of them. Those 356 shares in company B are currently valued at $52 591.88 I'm using this formula to get the Gain: Cost = Shares A value on the day of the merger - cash received Cost = 8786 x 8.18 - 30 838.97 Cost = $41 030.51 Gain = Shares B value - cost Gain = 52 591.88 - 41 030.51 Gain = $11561.37 This would be around £9,133.48 so I would have to pay CGT on £3,133.48 given this year CGT allowance. Is this method to determine the cost of my Shares in B correct? I am trying to confirm that the original cost basis of the Shares in A is now irrelevant, and only the cost at the time of the merger should be taken into account. 

Email add removed Admin  .

Hi,

We regret that we cannot confirm if your calculation is correct. Helpsheet HS284 might be of some help.

Shares and Capital Gains Tax (Self Assessment helpsheet HS284)

Thank you.