Tax Query

[D_Walker]

Just looking for some guidance for my parents before they do anything.

They bought some shares in Kerry Co-Op way back in the late 90's. Over the years, some of these have been converted to the Plc shares. They are now looking to sell some of these PLC shares without creating a tax liability.
The price they paid for 1 Co-Op shares at the time was €20 (IR£ equivalent)

So if 20 of these shares converted to 160 Plc shares . Is the cost base for tax purposes the 20*20 or €400 and if they sold all these converted 160 shares at the current price of €93 to give €14,880 they will have a huge CCT liability? ( I know they have a CGT allowance each but...)

Have I adopted a too simplistic approach to this?
Thanks for any help in advance.

 

[dub_nerd]

That looks right to me. They have a huge CGT liability because they made a huge 3600% profit! Quite a good problem to have. A very slight amelioration is that they can allow for indexation up to 2003, increasing the cost base by around 20%. Plus a €1,270 tax exemption each in the year they realise the gain -- if they don't need the money immediately they should sell the shares over a number of years. Or at least do two batches in December and January to avail of two years relief.