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Commentary

54 Introduction

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

54 Introduction

| Commentary

4: CHARGEABLE GAINS ON DISPOSAL OF SHARES

54 Introduction

Most takeovers and reorganisations involve shareholders disposing of shares or other securities. This normally involves the possibility of an immediate charge to capital gains tax on any chargeable gain. The sellers must take particular care where there is any deferment in the payment of the purchase price, for example where that price is based to a certain extent on the past profitability, or the net asset value of the target company at completion, or there is in place some form of earn-out arrangement1. This is because, on a disposal of shares, any

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