CGT 12 & 13 - Matching Rules & Bonus & Rights Issues Flashcards
The matching rules for individuals are:
1st Shares acquired on the same day
2nd Shares acquired in the following 30 days
Last All other shares acquired (s.104 pool)
Once the disposals have been matched with the acquisitions, a gain is calculated for each match.
The s.104 pool is a single asset for CGT. Where shares in the s.104 pool are sold, each share in that pool will be treated as having a base cost ….
equal to the average cost of the shares in the pool at the date of the disposal.
The share matching rules apply to disposals of cryptocurrencies of the ….
same class. There is a different ‘pool’ for each type of cryptocurrency an individual owns.
A bonus issue is a ….
Bonus shares are treated as if they were acquired …
As they have no cost, a bonus issue will only affect….
free issue of shares by a company to its shareholders.
at the same time as the original shares.
the number of shares (not the cost)
A rights issue is where …
Again, rights shares are allocated to ….
They do have a cost and are treated….
existing shareholders are offered new shares to buy, often at a reduced price.
the underlying shares owned.
in the same way as a normal purchase of shares.
