Tax Information (For UK tax payers only)
The following information applies to UK individual tax payers and is in English only. Please speak to a professional tax advisor for advice if you have any doubt about your tax position.
This depends on your personal circumstances. We can’t give advice on potential CGT liabilities for individual shareholders. There is a CGT annual exemption which you can find on the HMRC website.
The cost of your shares for CGT purposes depends on how you acquired them. The cost of:
- Shares bought at the preferential rate as part of the Standard Life IPO on 10 July 2006 have a cost of £2.185 per share
- Bonus shares issued (pre-merger) on 10 July 2007 is £3.24875 per share.
- Shares bought on the open market is the price paid.
For those UK resident and domiciled individual shareholders who received Standard Life Aberdeen PLC shares (New shares) in exchange for their Aberdeen Asset Management PLC shares (Scheme shares) under the all-share merger scheme on 14 August 2017, the cost for CGT purposes of their New shares should be the same as the cost of their Scheme shares and the New shares will be treated as having been acquired at the same time as the Scheme shares. Further information can be found in the Scheme circular.
Remember, by giving you this information we are not offering tax advice. It is based on you being an individual shareholder, not a trustee, dealer, insurance company or having received your shares by virtue of an office or employment. If you are in any doubt about your tax position you should seek independent advice.
The following information applies to UK individual tax payers and is in English only. Please speak to a professional tax advisor for advice if you have any doubt about your tax position.
The receipt of bonus shares on 10 July 2007 will have an impact on your base cost for CGT purposes. The impact will depend upon how you were taxed on the bonus shares when you received them. Bonus shares received in respect of shares bought at the preferential rate of £2.185 per share (preferential shares):
If the value of the bonus shares received [at the time received] with respect to the preferential shares exceeded either 5% of the value of the preferential shares or £3,000, then the receipt of the bonus shares would have given rise to a capital gain as a part disposal of your preferential shares. For determining the value of the bonus shares you would use £3.24875 per bonus share received. In calculating the part disposal gain you would have had to allocate the base cost you had in the existing preferential shares between your existing preferential shares and the bonus shares.
That part disposal could, of course, have qualified for exemption under the annual exemption allowance for capital gains when taken together with any other capital gains for that year. The exemption was £9,200 for 2007/08. The base cost to be used in any future disposal would be a combination of the preferential share base cost (that part not used in the part disposal calculation) plus the value of the bonus shares. In this situation, therefore, you would use £3.24875 as the base cost of the bonus shares.
If, however, the part disposal qualified as a "small part disposal" and you elected for those rules to apply then you would have had to reduce the base cost of your preferential shares by the value of the bonus shares, using £3.24875 to calculate the value of the bonus shares for determining the amount of the deduction. A "small part disposal" would have been one where the value of the bonus shares (using £3.24875 per share) is less than 5% of the value of the preferential shares or £3,000.
The following information applies to UK individual tax payers and is in English only. Please speak to a professional tax advisor for advice if you have any doubt about your tax position.
We have produced a guide with examples of how to apportion base cost relating to the Return of Capital announced on 22nd October 2018 and paid in November 2018 which is available below.
CGT Base Cost Apportionment 2018
The following information applies to UK individual tax payers and is in English only. Please speak to a professional tax advisor for advice if you have any doubt about your tax position.
We have produced a guide with examples of how to apportion base cost relating to the return of value payment paid in April 2015 which is available below. Please also see information on the Bonus issue of shares in the Capital Gains Tax question and answer.
CGT Base Cost Apportionment 2015