British American Tobacco (BAT) has published updated guidance on its website detailing historical base cost adjustments for shareholders calculating capital gains tax liabilities. The information covers key corporate events including capitalisation issues in 1983 and 1993, demergers of Argos and Arjo Wiggins Appleton in 1990, and the 1998 reorganisation that created BAT and Allied Zurich. The company provides specific apportionment ratios and share prices to help shareholders compute adjusted base costs for disposals.
The guidance outlines that for the June 1983 3-for-1 capitalisation, the base cost of shares held before the issue must be divided by four. For the April 1990 demerger of Argos, the base cost of B.A.T Industries shares is apportioned with 94.871% retained for B.A.T Industries and 5.129% allocated to Argos shares. Similarly, for the June 1990 demerger of Arjo Wiggins Appleton (AWA), 90.361% stays with B.A.T Industries and 9.639% goes to AWA. The May 1993 1-for-1 capitalisation requires dividing the base cost by two.
For the September 1998 reorganisation, shareholders received one BAT share and one Allied Zurich (AZ) share for every two B.A.T Industries shares. The base cost is apportioned 34.997% to BAT and 65.003% to AZ, based on first-day dealing prices of 422.50p and 784.75p respectively. BAT also provides the 31 March 1982 market value for B.A.T Industries shares at £4.075, adjusted to £0.30562 for BAT shares and £0.56770 for AZ shares after accounting for subsequent corporate actions.
This update serves as a technical reference for UK taxpayers holding BAT shares, clarifying the complex calculations required for capital gains tax purposes. The company advises that additional adjustments may be necessary depending on individual circumstances.
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