Delisting

[tg]

Hi,

I have some shares from Intercytex Plc that were delisted in January this
year.
The company was re-registered as a private limited company and trading of
the shares was cancelled. Does this mean I can declare my holding as a
capital loss for this financial year?

Thanks in advance.


TG

 

[Tim]

I have some shares from Intercytex Plc
that were delisted in January this year.
The company was re-registered as a private limited company
and trading of the shares was cancelled. Does this mean I
can declare my holding as a capital loss for this financial year?

If you still hold the shares, then don't you have the
potential to receive dividends or sell them in future...?

If so, then any loss hasn't been realised yet,
so the answer is probably 'no'.

 

[tg]

The shares still show up in my nominee account, but I can't trade them.
There is no dividend, the re-registered private company is in the
process of being wound up, and shareholders are not expected
to receive anything.

Does it mean until the winding up is complete, and it is certain
shareholders won't receive anything, I can't declare any
capital loss?

TG

 

[Ronald Raygun]

The shares still show up in my nominee account, but I can't trade them.
There is no dividend, the re-registered private company is in the
process of being wound up, and shareholders are not expected
to receive anything.

Does it mean until the winding up is complete, and it is certain
shareholders won't receive anything, I can't declare any
capital loss?

What's the rush? Have you realised capital gains this year, in
excess of the CGT-free limit, against which you could set the
loss? If not, why not just wait?

But if so, then, well, although you may not be able to trade them
on the public stock market, there is nothing in principle to stop you
selling them privately, other than that nobody would be foolish enough
to want to buy them.

You could bribe someone to buy them off you for a few quid, by giving
them the few quid for which to buy them off you, plus a pint.

 

[Jonathan Bryce]

What's the rush? Have you realised capital gains this year, in
excess of the CGT-free limit, against which you could set the
loss? If not, why not just wait?

But if so, then, well, although you may not be able to trade them
on the public stock market, there is nothing in principle to stop you
selling them privately, other than that nobody would be foolish enough
to want to buy them.

You could bribe someone to buy them off you for a few quid, by giving
them the few quid for which to buy them off you, plus a pint.

He could also make a negligible value claim

See http://www.hmrc.gov.uk/cgt/negligible_list.htm

His shares aren't on the list, but that is probably because nobody has asked
them to put them there.

 

[Tim]

He could also make a negligible value claim

See http://www.hmrc.gov.uk/cgt/negligible_list.htm

Hmmm - the comment on Marconi at the foot of the list looks interesting:-
"... base cost is to be apportioned using part disposal formula
i.e. A/A+B. The A element will be the value of the Marconi
Corporation shares and warrants received, the B element will be nil."

If B is 'nil', then isn't 'A/A+B' *always* equal to one?
What's the point of using the formula then?

 

[tg]

Thanks guys for all your advice.
That's right, I was thinking of using them to offset my gains.
Looks like I'll hold on to them for now, and sell some other
loss-making shares instead (and there are many to choose from .

TG

 

[Jonathan Bryce]

Hmmm - the comment on Marconi at the foot of the list looks interesting:-
"... base cost is to be apportioned using part disposal formula
i.e. A/A+B. The A element will be the value of the Marconi
Corporation shares and warrants received, the B element will be nil."

If B is 'nil', then isn't 'A/A+B' *always* equal to one?
What's the point of using the formula then?

Marconi shareholders got some British Aerospace shares at one point, and
they are still worth something.