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Amati AIM VCT shares sale after merger

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FATKEN
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Amati AIM VCT shares sale after merger

#228800

Postby FATKEN » June 11th, 2019, 10:12 pm

I had originally bought a number of Amati VCT shares in February 2015 through a top-up offer. As a result of the merger of Amati VCT & Amati VCT 2 last year, the orignal Amati VCT shares were cancelled and I got some shares in the newly merged company - Amati AIM VCT in May 2018. As far as the 5 years rule is concerned, I am not sure if it is based on the date of the original shares purchase (2015) or the date of the shares issuance of the newly merged company (2018)? Under the circumstance, would I incur the wrath of the HMRC if the shares are sold in February 2020?

Any thoughts?

PinkDalek
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Re: Amati AIM VCT shares sale after merger

#228806

Postby PinkDalek » June 11th, 2019, 10:31 pm


BusyBumbleBee
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Re: Amati AIM VCT shares sale after merger

#228915

Postby BusyBumbleBee » June 12th, 2019, 12:26 pm

FATKEN wrote:I had originally bought a number of Amati VCT shares in February 2015 through a top-up offer. As a result of the merger of Amati VCT & Amati VCT 2 last year, the orignal Amati VCT shares were cancelled and I got some shares in the newly merged company - Amati AIM VCT in May 2018. As far as the 5 years rule is concerned, I am not sure if it is based on the date of the original shares purchase (2015) or the date of the shares issuance of the newly merged company (2018)? Under the circumstance, would I incur the wrath of the HMRC if the shares are sold in February 2020?

Any thoughts?

One of the reasons AMATI didn't merge the two earlier was that the merger impact hadn't been resolved. A special provision was introduced by the chancellor especially for that reason and they were able to go ahead without any deleterious effect on investors.

PinkDaleks reference talks about "VCT deferral relief " which is CGT rollover relief and not the IT initial purchase relief. However as far as I know this is unaffected by the merger but if you want certainty - ring AMATI up and ask. They are very investor friendly. But you have a clear audit trail of what happened so you can resist any attempt by HMRC to claim anything back if you sell after Feb 2020.

FATKEN
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Re: Amati AIM VCT shares sale after merger

#228927

Postby FATKEN » June 12th, 2019, 12:50 pm

Many thanks, PinkDalek and BusyBumbleBee. I will write to Amati to seek further clarification.

BusyBumbleBee
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Re: Amati AIM VCT shares sale after merger

#228944

Postby BusyBumbleBee » June 12th, 2019, 1:51 pm

So sorry, FATKEN, didn't realise this was your very first post on the day you joined the Lemon Fool - welcome - you will find a lot of people here with a great deal of knowledge and they are very helpful - regards - BBB


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