RBS 2007 Annual Report Download - page 239

237
RBS Group • Annual Report and Accounts 2007
Shareholder information
Capital gains tax
For shareholders who held RBS ordinary shares at 31 March
1982, the market value of one ordinary share held was 103p.
After adjusting for the 1 March 1985 rights issue, the 1
September 1989 capitalisation issue, the bonus issue of
Additional Value Shares on 12 July 2000 and the bonus issue of
ordinary shares on 8 May 2007, the adjusted 31 March 1982
base value of one ordinary share held currently is 15.4p.
For shareholders who held NatWest ordinary shares at 31
March 1982, the market value of one ordinary share held was
28.39p for shareholders who accepted the basic terms of the
RBS offer. This takes account of the August 1984 and June
1986 rights issues and the June 1989 bonus issue of NatWest
ordinary shares as well as the subsequent issue of Additional
Value Shares and the bonus issue of ordinary shares on 8 May
2007.
When disposing of shares, shareholders are also entitled to
indexation allowance (to April 1998 only in the case of
individuals and non-corporate holders), which is calculated on
the 31 March 1982 value, on the cost of subsequent
purchases from the date of purchase and on the subscription
for rights from the date of that payment. Further adjustments
must be made where a shareholder has chosen to receive
shares instead of cash for dividends. Individuals and non-
corporate shareholders may also be entitled to some taper
relief to reduce the amount of any chargeable gain on
disposal of shares.
It was announced in the Pre-Budget Report on 9 October 2007
that the capital gains tax treatment for individuals will change
for disposals made on or after 6 April 2008. There will be a
single rate of capital gains tax set at 18%. Indexation
allowance and taper relief will no longer be available and for
assets held on 31 March 1982, the market value of the asset
on that date will automatically be used for the purpose of
calculating the gain or loss arising on a disposal.
The information set out above is intended as a general
guide only and is based on current United Kingdom
legislation and HM Revenue & Customs practice as at this
date. This information deals only with the position of
individual shareholders who are resident in the United
Kingdom for tax purposes, who are the beneficial owners
of their shares and who hold their shares as an investment.
It does not deal with the position of shareholders other
than individual shareholders, shareholders who are
resident outside the United Kingdom for tax purposes or
certain types of shareholders, such as dealers in
securities.