What is the tax position on the issue and redemption of C Shares?
The allotment and issue of C Shares does not itself create any charge to UK income tax. However, if any capital gain an individual realises on redemption, when aggregated with other chargeable gains in the same tax year, including on the compulsory redemption of B Shares, exceeds the annual exempt allowance (£9,600 for 2008/2009), the excess may be subject to capital gains tax, even if the redemption proceeds are used to purchase additional Ordinary Shares. Additional tax information can be found in Your guide to C Shares (PDF,180 Kb) (pdf 180k).
