- The issue of C shares should not give rise to a charge to UK Income Tax or Capital Gains Tax.
- The redemption of C 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 C shares for cash (together with any other chargeable gains for the tax year in question) is less than the annual exempt allowance. To check the current annual exempt allowance please go to http://www.hmrc.gov.uk/rates/cgt.htm. You'll find information about the tax effects of C Shares on pages 7 to 10 of the Shareholder Guide
Important information regarding C Shares issued in July 2011
The following information applies only to the C Shares issued by the Company in July 2011. All subsequent issues of C Shares should be treated, for tax purposes, as per the guidance provided in the Scheme Circular and the Shareholder Guide .
July 2011 C Share issue
At the technical level the tax treatment of the C shares issued in July 2011 differs slightly from the analysis of other C share issues (as summarised in the first tab). However, for shareholders who elect either immediately to redeem their July 2011 C shares for cash or to reinvest their redemption proceeds through the CRIP, in practice the same result is expected to apply as for other C share issues.
For other shareholders the result may be different, depending on their personal circumstances. In broad terms, the tax liability, if any, which arises in respect of the July 2011 C share is likely to arise on issue rather than on a later redemption. Further details of the treatment of the July 2011 C share issue can be found on pages 30-31 of the Scheme Circular .