B shares - Tax implications

A detailed guide to the general tax position of UK Shareholders can be downloaded below.

In summary:

• The issue of B shares should not give rise to a charge to UK Income Tax or Capital Gains Tax.



• The redemption of B shares for cash may, depending on your circumstances, give rise to a Capital Gains Tax charge.Many individual shareholders, however,will find that no tax is payable because the chargeable gain on the redemption of the B shares for cash (together with any other chargeable gains for the tax year in question) is less than the annual allowance of tax free gains (£8,500 for 2005/06 and £8,800 for 2006/07).



• The conversion of B shares into ordinary shares should not give rise to a charge to UK Income Tax or Capital Gains Tax.



• If you later dispose of the ordinary shares into which the B shares have been converted, a Capital Gains Tax charge may arise depending on your circumstances.

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Further information on UK taxation	84kb