TaxCorporate TaxShell finally resolves CGT saga

Shell finally resolves CGT saga

Company agrees to give loan notes to small investors to avoid capital gains liaibility that arose through its restructuring

Royal Dutch Shell has promised small investors either cash or loan notes to
resolve its longstanding tax issues caused by the merger.

When the companies were restructured to form one group rather than two, that
gave rise to a £77m capital gains tax bill as small investors found they had to
sell and repurchase shares, concretising capital gains liabilities.

The company said it would buy out remaining shareholders in its Royal Dutch
arm either with cash or by issuing a loan note, which could be exchanged for
shares that would not incur capital gains tax.

Small investors has complained bitterly about the tax bill. The Association
of Private Client Investment Managers and Stockbrokers, which defends small
investors’ rights, said the move was ‘long overdue’.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter