Amati AIM VCT shares sale after merger

[FATKEN]

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]

Is the answer here?:

https://www.gov.uk/government/publicati ... er-the-vct

[BusyBumbleBee]

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]

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

[BusyBumbleBee]

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

[BusyBumbleBee]

Just to note that they have announced a new fundraise today : https://uk.advfn.com/stock-market/londo ... r/80209298

[FATKEN]

Thanks for the news about the top up offer from Amati later in the year, BusyBumbleBee.

Regarding my earlier question about 5 years sale rules after the merger, I have now received a reply from Samantha Dalby, IR Manager. Here is an extract, 'The merger of Amati VCT would not affect the selling of your shares after 5 years, the original allotment date still applies which a record is kept on the official register. I have attached a copy of your individual investments with the relevant dates which I hope you will find useful.'

Very impressed by the the quality and speed of her response. Well done, Amati.

[sinterklaas]

Yeah, Sam’s a good ’un.

[barchid]

I attended the Amati vct agm yesterday, which as usual was very well attended.
2 presentations, from Block energy & Bonhill, both informative, Block, despite only being purchased last year has done very well with positive hopes for the future (as oil exploration co's always offer!) but the portfolio review covered the rather gory period of end October to early January when the nav fell very sharply, by 50p from low 180's I believe.
Accesso was a large part of that, Dr Jourdan covered this stock by saying they had been aware of possibly aggressive accounting policy, but there wera a few saviours, AB in particular.
Last year he made much of the new industrial revolution we were in, and being in the "sweet spot", where all was going well.
This year was a more downbeat review centred on a new book called "Zucked" about facebook, and the problems that too much data on individuals can cause, presumably this more cautious stance is playing through to his stock selection this year.
A fact which I was totally unaware of was that the revenue from the companies in the vct is derived about a third from UK, same from US & again a third from EU/Asia, this I found very promising for the future.

[BusyBumbleBee]

Yeah, Sam’s a good ’un.

The way the whole company looks after PIs is very good - narrow spreads, good information, wish all VCTs were as well run.