³ÉÈËÓ°Òô

STOP PRESS: The remittance basis is to be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in Finance Bill 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

When one company acquires control of another company, this is called a takeover. This guidance note considers the capital gains tax (CGT) implications for shareholders of the company being taken over.

The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be either:

1. •

   wholly in cash

2. •

   new securities in the vendor in exchange for shares in the target company (a ‘share-for-share exchange’), or

3. •

   a mixture of cash plus new securities