CGT treatment of shares sale paid by part cash and part shares

[Barney Magoo]

I held some shares in a PLC that has been taken over by a transaction that was part cash and part shares in the company taking over. How is this treated for CGT purposes? I am not disposing of the new shares just yet. The share sale total value (cash + shares) is a Capital Gain.

Say 1000 shares held in Company A.
Company B takes over A for €10 per share plus 0.5 shares in Company B per share held in A.
So after the takeover I have €10,000 cash and 500 shares in B.
Is there CGT due now on the cash portion?

 

[dublin66]

You will probably find the whole lot is taxable - cash plus market value of the shares at date of "sale". There is relief available on paper for paper transactions so the swapping of one share for another is not taxable - however this is tricky and ususally requires that the paper for paper transaction is structured so that it qualifies for the relief (which is quite technical).

 

[Barney Magoo]

Thanks for your comment dublin66, I thought that it wouldn't be straightforward.
Better get a definitive opinion from the Rev., I suppose.