Capital Gains on mandatory cash compensation?

[Sparkling]

Hello,

a new lemon here

Are there any capital gains to consider after a company take-over (Wholefood aquisition by Amazon in 2017)?
I was a bit surprised to receive the mandatory cash compensation (5000 £ plus) back then. There were no warnings or options

Any hints highly appreciated.

Cheers,

Sparkling

[Alaric]

Are there any capital gains to consider after a company take-over (Wholefood aquisition by Amazon in 2017)?

Shares presumably. If Amazon bought the shares off you for more than you paid, there's a capital gain and thus a potential liability to capital gains tax. However individuals have an annual exempt allowance. This was £ 11,300 in the 2017-18 tax year.

Assuming you didn't have any other gains, there's no tax to pay and no need to notify HMRC.

[Sparkling]

Thank you for your response.

Unfortunately I maxed out my capital gains before the unexpected take-over/compensation. I notified HMRC about the mandatory sale in SA, but did not hear back from them on this issue and was just wondering.

Greetings,

Sparkling

[Gersemi]

Thank you for your response.

Unfortunately I maxed out my capital gains before the unexpected take-over/compensation. I notified HMRC about the mandatory sale in SA, but did not hear back from them on this issue and was just wondering.

Greetings,

Sparkling

When you say you notified HMRC via SA what do you mean? You should have completed the Capital Gains pages to notify them of the gain. If these were completed correctly a liability would have been calculated and the tax is now due.

Do you mean you made a note in the white space somewhere and you are expecting HMRC to contact you about it?

[Sparkling]

My mistake, sorry Gersimi and previous poster.

I confused share sales proceeds with capital gains.
I maxed up my shares sales , not the capital gains, before the surprise sale occurred. (Yes, I am always that dumb.) Sorry again.

[Alaric]

I maxed up my shares sales , not the capital gains, before the surprise sale occurred.

I believe there's a rule that HMRC expect to see an itemised list of gains when the total proceeds exceed 4 times the annual allowance, even where the gains themselves are within the allowance.

[Dod101]

My mistake, sorry Gersimi and previous poster.

I confused share sales proceeds with capital gains.
I maxed up my shares sales , not the capital gains, before the surprise sale occurred. (Yes, I am always that dumb.) Sorry again.

How do you 'max up' your share sales? What do you mean?

Dod

[GoSeigen]

My mistake, sorry Gersimi and previous poster.

I confused share sales proceeds with capital gains.
I maxed up my shares sales , not the capital gains, before the surprise sale occurred. (Yes, I am always that dumb.) Sorry again.

How do you 'max up' your share sales? What do you mean?

Dod

There's a limit on the total value of disposals you can make without being required to report them to HMRC. I expect the poster exceeded that limit and now has to do the CGT paperwork.


GS

[Dod101]

GS

Yes I forgot that or at least had not thought it through. I have never been in that position although most years I do have capital gains which of course I try to keep within the tax free limit.

Dod