The shares are held with Computershare US following the split of DPS from Cadbury way back. There's also a fair number of additional shares taken in lieu of divis. In all 233.62 shares worth about $24,240 USD or £21,450 at yesterday's price. The Cadbury shares were bought in the early '90s.
The first problem is that I haven't found much detail from the DPS shareholders site, in particular the date. According to press reports it's scheduled for "before 30 June" which doesn't leave much time if correct. https://investorplace.com/2018/03/dr-pepper-snapple-group-inc-stock-take-the-merger-premium-and-run/ Anyone know more?
The second is taxation. The reported offer is a special dividend of $103.75 plus one share in the merged company per DPS share. So $24,239 or £18,228 in divis. Which is nice except that I assume she'll pay the usual US witholding tax at 15% which I make a whopping £2734.
So I thought it would make sense to sell the whole holding, pay the UK CGT due and avoid her worrying about shares in a US company she's never heard of. I assume then there would be no US tax to pay? It looks as if she paid about £2800 for the Cadbury shares but as yet hasn't found the contract note. If so, I think that puts the cost of the cost of the DPS shares at about £750, so a gain of about £20,700 less allowance of £11,700 gives £9,000 net. (Ignoring the shares in lieu of divis.) CGT at 10% would then be £900. I suspect she may have loses on several other shares to reduce that further if I she can find the details. If the Cadbury contract note can't be found how does that leave things?
The other possibility is to sell enough shares up to her CGT allowance and take the special divi plus shares on the remainder. Selling costs for the full holding look like being about $90 including a wire fee. Haven't done the sums on that yet. All help gratefully received.
Moderator Message:
Moved to Taxes as this isn't really a DAK. (chas49)
Moved to Taxes as this isn't really a DAK. (chas49)