THE taxman is targeting his share of Standard Life windfall payments, a Glasgow accountant has warned.
Standard Life's planned GBP5bn summer flotation will trigger "free" shares worth an estimated GBP1700 each on average to its 2.4 million voting members.
However, Jim McInroy, managing partner of Martin Aitken chartered accountants, has reminded members that any demutualisation pay-outs in cash or shares are subject to capital gains tax, and that many will have to write to HM Revenue & Customs and offer to pay up.
McInroy said: "Gains of up to GBP8800 can be made tax-free in the current tax year, and the market price per share is being estimated at between GBP2.40 and GBP2.90 per share.
"If the shares are valued towards the top of the range, then anyone selling more than about 3000 shares will make a gain over the annual exemption - on top of any capital gains they may have already."
The taxman will take 20per cent of the balance over the annual tax free amount, with higher rate taxpayers suffering a 40per cent tax on the gain.
McInroy added: "Members in the self-assessment system will show the gains on their tax return, but anyone who does not usually fill in a tax return will have to remember to write to the taxman to volunteer the information and offer to pay the tax, or they will run the risk of hefty fines. It all goes to prove that the Revenue will always get their money somehow."
Barry Cameron, at Standard Life, said: "You would be looking at quite a gain in the shares before members would be subject to tax, and the crucial thing is that they have the choice of how and when to dispose of them."
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