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Posted Sun, 12 May 2024 23:28:44 GMT by KuenHK Lam
Hi, I have purchased (acquisited) a total of 20,000 stock shares in July 2009. I hold these shares for many years. In May 2023, the company sent out a cash offer to the existing shareholders in order to buy-back some shares. At the end of May 2023, I accepted a cash offer to sell back my 2,500 shares as a kind of buy-back to the company. I then got cash money for this buy-back offer. In this regard, I would like to know if this receiving cash money will be treated as "capital gain" or "income" and need to report it to HMRC for tax year 2023-2024. Secondly, for the above case, I still hold 17,500 shares on hands at this moment. I wonder if I am not required to report this transaction to HMRC for tax year 2023-2024 until all shares are sold out in future years and then submit SA108 form with computation worksheets by one go (to calculate whether it is a capital gain or capital loss). Your expert advice is sought. Thank you in advance.
Posted Thu, 16 May 2024 05:41:56 GMT by HMRC Admin 25 Response
Hi KuenHK Lam,
Please refer to:
HS285 Share reorganisations, company takeovers and Capital Gains Tax (2024) Updated 6 April 2024
Thank you. 

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